NMLS Laws and Regulations Practice Test

Owner-occupied purchases must have the borrower establish residence within 60 days after closing. This timeframe from Fannie Mae and Freddie Mac ensures the loan is used for a primary residence and not for investment or rental purposes. If occupancy isn’t established within 60 days, the loan could be reclassified as non-owner-occupied, which can affect pricing, underwriting, and eligibility. The other intervals (30 days, 90 days, 120 days) do not align with these standard guidelines, making 60 days the correct timeframe.