1

Question 1

appraisal

Answer 1

the act or process of developing an opinion of value; an opinion of value. (adjective) of or pertaining to appraising and related functions such as appraisal practice or appraisal services

Question 2

report

Answer 2

any communication, written or oral, of an appraisal or appraisal review that is transmitted to the client upon completion of an assignment.

Question 3

An _______ is an intellectual process, in which an appraiser forms an opinion of value. On the other hand, the ___________ is the communication of the appraisal, or value opinion, which the appraiser has formed.

Answer 3

appraisal, appraisal report

Question 4

The reporting of a real property appraisal is the subject of:

Answer 4

USPAP STANDARD 2

Question 5

STANDARD ___ covers real property appraisal development, and STANDARD ___ covers real property appraisal reporting.

Answer 5

1, 2

Question 6

The key phrase in STANDARD 2 is “______”

Answer 6

not misleading.

Question 7

the party or parties who engage, by employment or contract, an appraiser in a specific assignment.

Answer 7

THE CLIENT

Question 8

Let’s revisit the appraisal process again. The steps include:

Answer 8

1. Identification of the problem
2. Determination of the scope of work
3. Collection and analysis of the data
4. Determination of highest and best use
5. Application of the approaches to value
6. Reconciliation
7. Reporting of the appraisal

Question 9

is that loss in value that occurs as a result of the normal deterioration or physical damage to the structure itself.

Answer 9

Physical deterioration

Question 10

When a property is appraised with an effective date that is some time in the future, this is a(n):

Answer 10

PROSPECTIVE

Question 11

What type of depreciation is always incurable?

Answer 11

EXTERNAL OBSOLESCENCE

Question 12

an assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser’s opinions or conclusions.

Answer 12

EXTRAORDINARY ASSUMPTION

Question 13

a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.

Answer 13

HYPOTHETICAL CONDITION:

Question 14

When the intended users do not include parties other than the client, a _____________ may be provided.

Answer 14

Restricted Use Appraisal Report

Question 15

In a written real property appraisal report, USPAP requires that a statement of the reporting option must be ___________.

Answer 15

PROMINENT

Question 16

One exception to “summarize”, and “state” is that a Restricted Appraisal Report of a market value appraisal assignment must contain a summary of

Answer 16

The analysis of the subject’s sales, options, and listings. (Ch 2, Example of “State” from AO-11)

Question 17

When an opinion of exposure time is developed, it must also be _______.

Answer 17

REPORTED

Question 18

Two dates must be stated in the report – the effective date of the appraisal, and the date of the report. These two dates are required in every written real property appraisal report, regardless of the report option used. (Ch 3, SR 2-2 a vi)

Answer 18

TRUE

Question 19

In an Appraisal Report, an appraiser must state the type and definition of value, and also

Answer 19

cite the source of the definition. (Ch 3, FIRREA - Market Value Definition)

Question 20

As we stated in the previous chapter, Standards Rule ___ can be used as a convenient checklist for the minimum content requirements for USPAP-compliant real property appraisal reporting, no matter what the form or format. Simply go down the list of 12 required items, and check off the ones that appear in your appraisal report. If they are all in your report, then its content is USPAP-compliant.

Answer 20

2-2

Question 21

T OR F:The Fannie Mae 1004 form is intended to be used to report an appraisal on modular or panelized homes.

Answer 21

T

Question 22

Three common ways to identify a property are:

Answer 22

Metes & bounds, lot & block, and rectangular survey

Question 23

T OR F: Properties larger than 1 acre are required to be reported in acres, not square feet.

Answer 23

T

Question 24

At the top of page 2 of the URAR form, which listings and sales should be considered and reported?

Answer 24

Only properties that are comparable to the subject property

Question 25

In a Fannie Mae appraisal, which FEMA zones would be considered special flood hazard areas?

Answer 25

ZONES A AND V

Question 26

Which party is ultimately responsible for compliance with Fannie Mae and Freddie Mac policies and initiatives?

Answer 26

THE LENDER

Question 27

Which federal government entity currently has oversight over Fannie Mae and Freddie Mac?

Answer 27

FHFA

Question 28

T OR F:As part of the implementation of the Uniform Appraisal Dataset (UAD), Fannie Mae and Freddie Mac changed the layout and format of several appraisal report forms.

Answer 28

F

Question 29

Which document would be MOST helpful for an appraiser in understanding the requirements of the Uniform Appraisal Dataset (UAD)?

Answer 29

UAD APPENDIX D

Question 30

T OR F:GSEs require USPAP compliance.

Answer 30

T

Question 31

If an MLS is used as a source for subject property offering data, the appraiser must enter:

Answer 31

The abbreviated MLS name and the MLS listing number or identifier

Question 32

Appendix D states, “Valid descriptions include, but are not limited to, ‘Colonial,’ ‘Rambler,’ ‘Georgian,’ ‘Farmhouse’. Do not use descriptors such as ‘brick,’ ‘2 stories,’ ‘average,’ ‘conventional,’ or ‘typical’ as these are not architectural styles. Design style names may vary by locality. The appraiser should report the name of the design style that is applicable within the local market area.” (Ch 5, Improvements and Design)

Answer 32

T

Question 33

An appraisal on which type of property, completed for a Freddie Mac lender, would NOT be subject to the requirements of the UAD?
DUPLEX
PUD

Answer 33

DUPLEX

Question 34

T OR F:If reliable information about the physical characteristics of the subject property is not available in an exterior-only inspection appraisal, the appraiser may use unreliable sources as long as this is properly disclosed.

Answer 34

F

Question 35

Which type of home has a small red metal label affixed to the exterior?

Answer 35

HUD-code manufactured home

Question 36

Manufactured home appraisals are required to be reported on Fannie Mae form _________.

Answer 36

1004C

Question 37

The 1025 form is sometimes referred to as the SRIPAR form, which stands for Small Residential Income Property Appraisal Report.

Answer 37

Small Residential Income Property Appraisal Report.

Question 38

Austin is appraising a 3-unit residential property for a Fannie Mae lender. Which form should he use to report the results of this appraisal?

Answer 38

1025

Question 39

An inspection made for the purpose of ensuring that repairs have been completed in accordance with a prior appraisal is ____________.

Answer 39

A recertification of value

Question 40

How does Fannie Mae require that cooperative units be valued?

Answer 40

Sales comparison approach

Question 41

Form 1004MC is actually an ______ to an appraisal report; it is not an appraisal reporting form

Answer 41

addendum

Question 42

T OR F:Form 1004MC is an addendum that is required for all 1-4-family residential appraisals for Fannie Mae, Freddie Mac, FHA, and VA loans.

Answer 42

T

Question 43

When appraising a manufactured home, an appraiser needs to look for the __________ to verify that the home was constructed in accordance with federal standards.

Answer 43

HUD LABEL

Question 44

The differences in required information between the Fannie Mae 1004 and 1025 forms include:

A)The 1025 requires comparable rental information
B)The 1025 requires units of comparison (sale price per room, etc.)
C)The 1025 has a section where an indicated GRM can be extracted from
D)All of these answers

Answer 44

D)All of these answers

Question 45

Fannie Mae requires which approach(es) to value in the appraisal of a HUD-Code manufactured home?

Answer 45

Sales comparison and cost approaches only

Question 46

Austin is appraising a 3-unit residential property for a Fannie Mae lender. Which form should he use to report the results of this appraisal?

Answer 46

1025

Question 47

Form 1025 is used to report the appraisal of

Answer 47

two-to-four-unit residential properties.

Question 48

Why does the Individual Condominium Unit Appraisal Report require extensive information regarding the condominium project in which the subject unit is located?

Answer 48

Because common elements and amenities are essential to the value of a condominium unit

Question 49

An Appraisal Report presents a synopsis of the information. This requires that the appraiser’s workfile must contain additional details, ready to be provided if necessary. This type of report requires an appraiser to “________” significant parts of the appraisal assignment.

Answer 49

summarize

Question 50

appraisal report as four different sections:

Answer 50

Introduction
Appraisal problem and scope of work
Presentation of data
Analysis and conclusion

Question 51

In a narrative appraisal report, generally, where should you include maps, photographs, graphs, and similar exhibits?

Answer 51

In the body, in the addendum, or in both places

Question 52

The title page should also include the:

Answer 52

Name and address of the property appraised
Report Type (Appraisal Report or Restricted Appraisal Report)
Date of the report
Effective date of value opinion
Name and address of the client

Question 53

“an assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser’s opinions or conclusions.”1

Answer 53

extraordinary assumption

Question 54

is an assumed condition defined as “a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.”2

Answer 54

hypothetical condition

Question 55

What is the best way to explain the appraiser’s highest and best use analysis in an Appraisal Report?

Answer 55

By separately explaining and describing each of the four test criteria

Question 56

T OR F:It is a best practice, but not required by USPAP, to provide information about your scope of work in a separate identified section of the report.

Answer 56

T

Question 57

Why is the title page important in a narrative appraisal report?

Answer 57

Because it is your opportunity to make a positive first impression

Question 58

T OR F:In an appraisal report, it is not necessary to explain the meanings of acronyms such as USPAP because an intended user of an appraisal should already have a basic knowledge and understanding of appraisal terminology and USPAP.

Answer 58

F

Question 59

A productive way to start writing a narrative appraisal report is to include an “Appraisal Summary” or “Summary of Salient Facts.” What should such a summary include?

Answer 59

Many of the USPAP-required items that can simply be stated

Question 60

T OR F: Fannie Mae and Freddie Mac require the appraiser to possess the required competency before accepting an appraisal assignment.

Answer 60

F

Question 61

T OR F: The current URAR form should NOT be used to report appraisals for non-mortgage lending intended uses.

Answer 61

F: The current URAR form is not recommended for reporting of appraisals for non-lending intended uses, such as estates, eminent domain, litigation, relocation, etc. (Ch 8, Fannie Mae)

Question 62

Form for Modular homes

Answer 62

Fannie Mae 1004