Conventional mortgage loans may be conforming and non-conforming. Conventional mortgage loans are loans that are not backed by any government enterprise. Government sponsored Enterprise or better known as GSE’s. The more commonly know GSE’s are FHA, VA, and USDA type loans.
Conforming conventional mortgage loans follow the guide lines of Freddie Mac and Fannie Mae. This is important to the lender as these loans may be sold off to one of them in order to free up funds for the lender to make other loans. In our education center, you can read about the difference between a servicing agent and an investor.