nonconforming loan

nonconforming loan definition - business

nonconforming loan

A mortgage loan that is not eligible for sale to Fannie Mae or Freddie Mac. A loan may be nonconforming because it exceeds the established limit. A nonconforming loan may penalize a borrower with higher fees or a higher interest rate.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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