Are conventional loans secured/insured/protected by the FHFA?
Conventional loans that meet conforming lending guidelines are guaranteed by Fannie Mae and Freddie Mac. These government sponsored enterprises set the lending criteria for conforming loans to encourage homebuyers to buy homes they can comfortably afford. Homebuyers with loans that conform to their lending guidelines are less likely to default on their loans and experience foreclosures.
The Federal Housing Finance Authority (FHFA) supervises and regulates Fannie Mae and Freddie Mac to ensure their actions help stabilize and provide affordability to the housing market.