FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act) affected real estate by:
Why Establishing appraisal requirements and licensing standards for federally related transactions Is Correct
Answer B: Establishing appraisal requirements and licensing standards for federally related transactions
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
Key Finance Terms in This Question
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- An appraisal conducted for a federally related loan transaction must be performed by a:Property Valuation
- An appraiser's certification in the appraisal report states that the opinion of value is:Property Valuation
- A real estate appraiser in Alabama must hold a state license or certification issued by:Property Valuation
- In Alabama, an appraisal for a federally related transaction (such as an FHA or conventional bank loan) must be performed by:Property Valuation
- RESPA (Real Estate Settlement Procedures Act) applies to Alabama transactions involving:Finance
- A lender requires a home appraisal primarily to:Finance
- Which of the following federal laws created the Consumer Financial Protection Bureau (CFPB) to oversee mortgage lending?Finance
- A lender's appraisal of a property for a residential mortgage must be performed by:Finance
Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
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