Ch 2 Quiz

Question 1

The professional society that specializes in appraising personal property is the

Answer 1

American Society of Appraisers

Question 2

The Savings and Loan Crisis happened in the

Answer 2

Late 1980s

Question 3

Within The Appraisal Foundation, there are ________ advisory councils that provide research and advice to the Foundation.

Answer 3

two. They are TAFAC and IAC. The IAC frequently identifies and recommends candidates to be considered for appointment to the ASB and the AQB. The IAC also assists the Foundation in identifying and cultivating potential corporate funding sources.

Question 4

True or False? The Appraisal Subcommittee’s mission is to ensure that real estate appraisers who perform appraisals in federally-related transactions are sufficiently trained and tested to assure competency and independent judgment.

Answer 4

True (The Appraisal Subcommittee’s mission is to ensure that real estate appraisers, who perform appraisals in real estate transactions that could expose the United States government to financial loss, are sufficiently trained and tested to assure competency and independent judgment according to uniform high professional standards and ethics.)

Question 5

The transfer of money from low interest-bearing accounts to higher interest-bearing accounts is referred to as

Answer 5

disintermediation (By the end of the 70’s, there was record inflation and record high interest rates. We were introduced to such things as disintermediation (the transfer of money from low interest-bearing accounts to higher interest-bearing accounts).)

Question 6

True or False? The Dodd-Frank Act gave the ASC the authority to create a National Registry of appraisal management companies.

Answer 6

True The Dodd-Frank Act, passed in 2010, gave additional powers and responsibilities to the ASC. Among them, the ASC is now responsible for maintaining a National Registry of appraisal management companies (AMCs).)

Question 7

True or False? Episodes of economic turmoil have occurred throughout U.S. history.

Answer 7

TRUE

Question 8

The Appraisal Foundation is a ___________ organization.

Answer 8

not-for-profit

Question 9

The Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) is also known as

Answer 9

the Savings and Loan Bailout Bill, That is the familiar name for the FIRREA.

Question 10

The AQB and the ASB were created for the express purpose of promoting and maintaining a high level of ____________

Answer 10

public trust

Question 11

Only the _______ has the authority to amend or interpret USPAP.

Answer 11

ASB

Question 12

The appraisal standards and qualification criteria issued by The Appraisal Foundation’s boards achieve legal authority by adoption, citation or implementation by

Answer 12

government agencies

Question 13

Who retains final authority over revisions to USPAP?

Answer 13

the Appraisal Standards Board

Question 14

Which board of The Appraisal Foundation is responsible for revising and editing USPAP?

Answer 14

ASB

Question 15

True or False? Appraisal management companies (AMCs) are required to comply with the requirements of USPAP.

Answer 15

FALSE

The Appraiser is required.

Question 16

The Uniform Standards of Professional Appraisal Practice (USPAP) was developed by the Ad Hoc Committee and was copyrighted by The _________________.

Answer 16

Appraisal Foundation

Question 17

In 1987, eight U.S. appraisal organizations formed

Answer 17

The Appraisal Foundation

Question 18

The first universally accepted appraisal report form appeared in the

Answer 18

1970s

Question 19

True or False? The requirements of the Equal Credit Opportunity Act do NOT apply to residential second mortgages.

Answer 19

FALSE

Question 20

The Uniform Standards of Professional Appraisal Practice (USPAP) was copyrighted by:

Answer 20

The Appraisal Foundation

Question 21

True or False? The ASC is responsible for maintaining a National Registry of appraisers.

Answer 21

TRUE

Question 22

Which entity is responsible for monitoring state appraiser licensing and certification agencies?

Answer 22

the Appraisal Subcommittee

Question 23

Which TAF advisory council consists of for-profit entities?

Answer 23

IAC

Question 24

How is the Appraisal Subcommittee funded?

Answer 24

through a National Registry fee charged to each appraiser (The Appraisal Subcommittee is funded by an annual National Registry fee that is charged to each certified and licensed appraiser. It is collected by each state, as part of each appraiser’s license fee, and submitted to the ASC.)

Question 25

Which is considered to be “other communications” provided by the ASB?

Answer 25

Advisory Opinions, Index, Q & As

Question 26

________ has regulatory authority in enforcing the housing requirements in most civil rights legislation.

Answer 26

HUD

Question 27

True or False? The ASC is responsible for maintaining a National Registry of appraisers.

Answer 27

TRUE

Question 28

When did the first groups of organized appraisers appear in the U.S.?

Answer 28

the 1930s. (The National Association of REALTORS has been in existence since 1908, with a Code of Ethics adopted in 1913. In the 1930s the first groups of organized appraisers appeared.)

Question 29

What event immediately preceded the Great Depression?

Answer 29

Stock Market Crash of 1929

Question 30

True or False? The Board of Trustees acts as the executive board for The Appraisal Foundation.

Answer 30

TRUE

Question 31

The largest professional appraisal society in the U.S. is the

Answer 31

Appraisal Institute

Question 32

What organization has 3 principal boards and what are they?

Answer 32

The Appraisal Foundation has three principal boards:
* Board of Trustees (BOT)
* Appraisal Standards Board (ASB)
* Appraiser Qualifications Board (AQB)

Question 33

Which of these entities is NOT a member of the Appraisal Subcommittee?

Answer 33

The Appraisal Foundation

Question 34

Handicap is defined as

Answer 34

a physical or mental impairment

Question 35

True or False? Valuation Advisories, issued by The Appraisal Foundation, provide guidance that is binding on real property appraisers.

Answer 35

FALSE

Question 36

The _________ monitors and reviews the practices, procedures, activities and organizational structure of The Appraisal Foundation.

Answer 36

ASC

Question 37

The secondary market came into prominence in mortgage lending in the

Answer 37

late 1970s

Question 38

Which entity is responsible for appointing members to the ASB and AQB?

Answer 38

the Board of Trustees

Question 39

In the 1970s, who developed uniform rules for mortgage underwriting?

Answer 39

Fannie Mae and Freddie Mac (During the latter part of the 70s, the secondary market emerged to smooth out the uneven flow of loan funds. Fannie Mae and Freddie Mac developed uniform rules for underwriting, and banking regulators imposed reserve requirements on the lending institutions.)

Question 40

True or False? Valuation Advisories, issued by The Appraisal Foundation, provide guidance that is binding on real property appraisers.

Answer 40

FALSE

Question 41

True or False? The requirements of the Equal Credit Opportunity Act do NOT apply to residential second mortgages.

Answer 41

FALSE

Question 42

The _________ monitors and reviews the practices, procedures, activities and organizational structure of The Appraisal Foundation.

Answer 42

ASC

Question 43

The _____ monitors state appraisal licensing and certification agencies.

Answer 43

ASC