Since many residential real estate loans are sold in the secondary market, there are guidelines which have been instituted by secondary market participants, most notably

Federal National Mortgage Association, known also as FNMA.

Explanation:

The government established the Federal National Mortgage Association in 1938. Also is known as Fannie Mae.

Is a $1 billion funding, which was designed to increase liquidity in the mortage market. The secondary mortgage market was created. Was a function to created and efficient, fair and stable systems for home loans that worked well for decades.

Today, Fannie Mae buys and guarantees mortgages that adhere to its funding criteria, and then sells them on to investors, such as insurance companies, foreign governments and pension funds as mortgage-backed securities.

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