CONFORMING MORTGAGE

conforming mortgage: translation

A residential mortgage loan that meets all FNMA or FHLMC standards. Mortgages may conform to agency requirements regardless of whether they are sold or retained by the originator. Even though a conforming mortgage may not be sold to FNMA or FHLMC, its amount, repayment terms, and documentation meet the standards of those agencies, and the loan may be sold to them at any time during its life. American Banker Glossary