Nationwide Mortgage Licensing System (NMLS) Practice Exam

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What is another name for a VA appraisal?

CRV
Veteran's appraisal report
Fannie Mae 1025
AVA

The correct answer is: CRV

The term "CRV" stands for "Certificate of Reasonable Value." This is a specific type of appraisal used by the Department of Veterans Affairs (VA) to determine the value of a property that veterans wish to purchase using their VA loan benefits. The CRV is essential as it establishes the maximum amount the VA will guarantee on the loan, ensuring that veterans are not overpaying for properties. This process is part of the VA's efforts to protect veterans from potential market fluctuations and ensures that they receive fair appraisals. The CRV is crucial because it also verifies that the property meets certain standards for safety, security, and soundness, aligning with the VA's mission to support the housing needs of veterans. The other options do not correctly represent the term associated with VA appraisals. For instance, "Veteran's appraisal report" lacks the specific designation and formal name the VA uses. Fannie Mae 1025 refers to a different type of appraisal used for multi-family properties and does not relate to the VA's appraisal process. Similarly, "AVA" typically refers to Automated Valuation Models, which are not specific to the VA appraisal process.