FIRREA was enacted to ensure what aspect of real estate practice?

• A. Lowering lending rates
• B. Expanding property tax collection
• C. Real estate appraisals are performed up to standard
• D. Regulating mortgage lending disclosures

Answer: (C)

FIRREA focuses on appraisal quality in federally related real estate transactions. It was enacted to reform and strengthen the regulation of financial institutions by ensuring credible, independent appraisals. Key elements include establishing the Appraisal Subcommittee to oversee state licensing and the Appraisal Foundation, and requiring that appraisals used in federally related transactions comply with the Uniform Standards of Professional Appraisal Practice. This aims to prevent biased or inaccurate valuations and to bolster the safety and soundness of lending. The other options aren’t what FIRREA addresses—there’s no goal to lower lending rates, increase property tax collection, or regulate mortgage lending disclosures—its core purpose is to maintain appraisal standards and oversight.