Which of the following does NOT fall under federally related transactions?

In the context of federally related transactions, it’s important to recognize that these transactions are generally those that are associated with federally insured or guaranteed loans. Government-backed loans, such as FHA and VA loans, clearly fall under the category of federally related transactions because they involve federal government programs designed to insure or guarantee the loans, thus reducing risk for lenders.

Regulated underwriting also pertains to federally related transactions, as it requires adherence to federal guidelines and standards set by agencies such as Fannie Mae or Freddie Mac. This regulatory framework ensures that the underwriting processes used in these transactions are consistent with federal laws and regulations.

Securitized transactions, which involve the bundling of loans into securities for sale to investors, frequently include federally related loans as collateral for mortgage-backed securities. The securities sold have to comply with federal regulations given the federal backing and involvement in these loans.

Conventional loans, on the other hand, are typically not backed by the federal government. They are considered loans that are underwritten based on the lender’s criteria without federal insurance or guarantees. As a result, conventional loans do not fall under the definition of federally related transactions, making this the correct choice in the context of the question.