Loan which does not meet the standards of the lender. opposite of conforming loan.
A loan that exceeds Fannie Mae's and Freddie Mac's loan limits, currently at $227,150. Freddie Mac and Fannie Mae loans are referred to as conforming loans.
For various reasons, including loan amount and loan characteristics, these are loans that usually have a higher interest rate and origination fee because they are not eligible for sale and delivery to either Fannie Mae or Freddie Mac