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California Real Estate Exam

Category - Vocab

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Which of the following does the Federal Housing Administration do?

Lends money and plans and constructs housing
Insures residential mortgage loans made by government lenders
Sets standards for construction and underwriting
None of the above

Explanation

Answer: C. The main activity of the FHA is the insuring of residential mortgage loans made by private lenders. It sets standards for construction and underwriting but does not lend money or plan or construct housing.

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