Tennessee Realtor State Practice Exam

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Prepare for the Tennessee Realtor State Exam. Use flashcards and multiple-choice questions, each with hints and explanations. Ensure your success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is one of the goals of the Federal Housing Administration's mission?

Eliminate all lending risks.
Facilitate profit for lenders.
Stabilize the mortgage market through lending standards.
Encourage risky lending practices.

The correct answer is: Stabilize the mortgage market through lending standards.

One of the primary goals of the Federal Housing Administration (FHA) is to stabilize the mortgage market by implementing and adhering to established lending standards. By setting these standards, the FHA works to ensure that lending practices are sound, which in turn helps to protect both lenders and borrowers. This stabilizing effect is crucial for maintaining a balanced housing market and promoting responsible lending, especially during economic downturns. The FHA's role involves making homeownership more accessible while managing the risks associated with lending, contributing to the overall health of the housing economy.