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Conforming Loan

A mortgage loan that meets all requirements to be eligible for purchase by federal agencies such as Fannie Mae and Freddie Mac. The maximum conforming loan amount is $300,700 for a one-unit property ($451,050 in Alaska, Hawaii and the Virgin Islands).

Consumer Reporting Agency

A company that regularly gathers, files and sells information to creditors to facilitate their decisions to extend credit.

Contingency

A condition that must be satisfied before a contract is legally binding.

Contract of Sale

The agreement between the buyer and seller on the purchase price, terms and conditions of a sale.

Conventional Loan

Loans that are not made under any government housing program; they are not subject to the restrictions of government housing programs, such as loan size limits.

Conversion Clause

A provision in some ARMs that allows you to change an ARM to a fixed-rate loan, usually after the first adjustment period. The new fixed rate will be set at current rates, and there may be a charge for the conversion feature.

Convertible ARMs

A type of ARM loan with the option to convert to a fixed-rate loan during a given time period.

Conveyance

The document used to affect a transfer, such as a deed, or mortgage.

Cost of Funds Index (COFI)

An index of the weighted-average interest rate paid by savings institutions for sources of funds, usually by members of the 11th Federal Home Loan Bank District.

Credit Bureau

A credit bureau is a clearinghouse for credit history information. Credit grantors provide the bureau with factual information on how their credit customers pay their bills. The bureau regularly assembles this information, along with public record information obtained from courthouses around the country, into a "file" on each consumer.

Credit Report

A report detailing the credit history of a prospective borrower that's used to help determine borrower creditworthiness.