“Conforming” refers to a conforming loan, a mortgage eligible to be purchased by Fannie Mae or Freddie Mac, the government-sponsored enterprises (GSEs) integral to the mortgage market in the U.S. Fannie Mae and Freddie Mac buy loans from lenders to create mortgage-backed securities (MBS) for the secondary mortgage market. A loan that “conforms” meets certain standards set by the Federal Housing Finance Agency (FHFA). These standards have set limits and guidelines for borrower credit profiles, down payments, loan amount and property types.