What type of institutions are primarily impacted by FIRREA's provisions?

The correct choice is depository institutions because FIRREA, or the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, was specifically enacted in response to the savings and loan crisis of the 1980s and early 1990s. The act aimed to enhance the regulation of savings associations and other depository institutions, including banks and credit unions.

FIRREA introduced significant changes in the regulatory framework governing these institutions, including measures to strengthen capital standards, increase oversight from federal regulators, and protect depositors' funds. As a result, the act directly affects depository institutions because it was created to ensure their stability and safeguard the financial system against risks stemming from mismanagement and inadequate oversight.

Understanding FIRREA's impact is vital for anyone working in real estate and finance, as the health of depository institutions plays a crucial role in mortgage lending and overall availability of financing for real estate transactions.