An Arizona lender who 'red flags' an appraisal as inflated and orders a second appraisal is exercising:
Why Responsible underwriting and quality control to ensure collateral adequacy Is Correct
Answer B: Responsible underwriting and quality control to ensure collateral adequacy
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
People Also Study
Related Arizona Questions
- Market value in Arizona real estate appraisal is most accurately defined as:Property Valuation
- The appraisal approach most commonly used to estimate the value of single-family residential properties in Arizona is the:Property Valuation
- Which of the following best describes 'market value' in Arizona real estate?Property Valuation
- Which of the following BEST defines 'market value' as used by Arizona appraisers?Property Valuation
- An Arizona property has a market value of $475,000. It is assessed at 10% of market value, and the tax rate is $9.20 per $100 of assessed value. What is the annual property tax?Real Estate Math
- Arizona's title insurance market is regulated to ensure that title insurance companies:Escrow & Title
- An Arizona lender who originates loans and immediately sells them in the secondary market is engaging in the:Finance
- An Arizona property's market value is $420,000. Arizona residential property is assessed at 10% of full cash value. If the tax rate is 1.3%, what are the annual property taxes?Real Estate Math
Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
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.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
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.
State-Specific Concepts
Study This Topic
Practice More Arizona Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →