Which of the following is NOT true of Fannie Mae?

The statement regarding Fannie Mae that is not true is the one about the maximum loan-to-value (LTV) ratio being 100% with private mortgage insurance (PMI). Fannie Mae does not allow a maximum LTV of 100% with PMI; instead, their guidelines typically require a lower maximum LTV ratio if PMI is involved. Generally, Fannie Mae allows LTV ratios up to 95% on certain loans, where borrowers can finance up to 95% of the home's value without PMI if they meet specific criteria.

The other statements about Fannie Mae are accurate. It is indeed one of the largest secondary market investors in the nation, playing a critical role in providing liquidity to the mortgage market. Conforming loan limits, which determine the maximum loan amounts that can be sold to Fannie Mae, are indeed set annually based on changes in the housing market and are adjusted according to factors like the housing price index. Lastly, the Federal Housing Finance Agency (FHFA) serves as the regulator for Fannie Mae, overseeing its operations and ensuring its stability in the financial market.