Ch 3-4 Quiz Report Writing and Case Studies Flashcards
A real property appraisal report must contain sufficient information to allow __________ to understand the scope of work.
Intended users
_______________ have/has adopted the 1004 (URAR) appraisal report form.
HUD/FHA and VA
A blank URAR form is BEST described as:
A container for an appraisal report
A rectangular property measures 800’ x 900’. How would the site size be reported on the URAR form?
16.53 ac. 800 x 900 = 720,000 square feet. 720,000 sf divided by 43,560 = 16.53 acres. Properties larger than 1 acre are required to be reported in acres, not square feet. (Ch 4, URAR, Page 1: Site Section)
A Restricted Appraisal Report does not require the appraiser to state the effective date of the appraisal.
FALSE
A sentence in an appraisal report that indicates, “The subject property is currently under agreement for $550,000” would be considered __________.
A statement
All of these may set forth guidelines establishing how recent and proximate comparable sales must be, except for_______________.
Ginnie Mae and USPAP
An appraiser is engaged by an appraisal management company (AMC) who is acting as an agent of the lender. The AMC requests that the appraiser put the lender’s name on the appraisal report as the client. Which statement is TRUE about this situation?
The lender is the client.
An appraiser is preparing a retrospective appraisal. Which statement is TRUE regarding the effective date?
It will be prior to the date of report.
An appraiser is preparing an appraisal with an effective date of July 3rd. The report is dated July 5th. This would most likely be a ____________.
Current appraisal
An appraiser is required to include a statement in the report certification even if he or she did not provide prior services regarding the subject property within the prior three years.
TRUE
An appraiser is required to include a statement in the report certification even whether or not they provided prior services regarding the subject property within the prior___________.
three years
An appraiser is required to state two dates in every Appraisal Report.
TRUE
An appraiser may base a value opinion on special, non-market financing terms.
TRUE. If the client requests that the market value be based on non-market financing or special financing terms, the report must summarize the terms of the special financing and explain their effect on the subject’s value. (Ch 3, FIRREA - Market Value Definition)
An appraiser may be engaged to perform an appraisal by an agent of the client.
TRUE
An appraiser may not add __________ conditions to the URAR form, but is permitted to add ____________ certifications.
limiting, additional
An appraiser may not add limiting conditions to the URAR form, but is permitted to add additional certifications.
TRUE
An appraiser’s lender-client asks the appraiser to use the Fannie Mae URAR form to report his appraisal. This client is essentially asking for a:
Appraisal Report
At the top of page 2 of the URAR form, which listings and sales should be considered and reported?
Only properties that are comparable to the subject property
Barb is reporting an appraisal of a single-family home, using a URAR form. What is the BEST way to ensure that her report meets the requirements for an Appraisal Report?
Meet the minimum content requirements set forth in USPAP
Brenda prepares an Appraisal Report, in which she states, word-for-word, the market value definition she is using. What other USPAP reporting requirements (if any) does she have regarding her definition of value?
She must cite the source of the definition.
By fully filling out the URAR form, an appraiser has met his or her USPAP requirements for reporting.
FALSE
Each of the report options outlined in Standards Rule 2-2 (a) and (b) has ___ numbered minimum content requirement items.
12
Each of the report options outlined in Standards Rule 2-2 (a),and (b), has twelve(12) numbered minimum content requirement items.
False
Eduardo completes an appraisal for a mortgage lender. One month later, a different lender calls and tells Eduardo that she has a copy of the report. She asks him to add her name onto the report as an intended user. What can Eduardo do under USPAP?
He is not permitted to retroactively add intended users.
Exposure time is the same as marketing time.
FALSE. Exposure time is different than marketing time. Unlike exposure time, an opinion of marketing time is not required by USPAP, although some clients may request it in certain assignments. (Ch 3, Exposure Time)
Fannie Mae last revised its residential appraisal report forms in:
38412
Fannie Mae’s pre-printed scope of work in the URAR form requires an appraiser to:
Perform a complete visual inspection of the interior and exterior of the subject property. Inspect the neighborhood. Inspect the comparable sales from the street.
For an appraisal for a Fannie Mae lender, the effective date of the appraisal is the date __________________.
the property was inspected
For an appraisal for a Fannie Mae lender, the effective date of the appraisal is the date the property was inspected.
TRUE. Fannie Mae and Freddie Mac require that the effective date must be the date that the property was inspected. (Ch 3, SR 2-2 a vi)
For Fannie Mae purposes, the date of the report is _________.
The date the report is signed
For purposes of the URAR form, which statement is true concerning effective age and actual age?
The form asks for both.
For real property appraisal reports, USPAP compliance is determined by:
Content
Generally speaking, Fannie Mae and Freddie Mac will not purchase a mortgage on a property that is an illegal use.
TRUE
How is a unit in a PUD defined by Fannie Mae?
There is an HOA with mandatory automatic membership and the ability to lien properties
Howard appraised a property for a very secretive client, who instructed him not to disclose to anyone that he had appraised the property. Twenty-seven months later, Howard receives an appraisal request from another client. What are Howard’s USPAP obligations?
He must decline the assignment.
HUD/FHA and VA have adopted the 1004 (URAR) appraisal report form.
TRUE
If an appraisal report indicates three comparable sales adjusted to indicate $210,000, $220,000 and $230,000, the appraiser is not required to explain why he or she reconciled the value indication at $220,000.
FALSE
If an appraisal report indicates three comparable sales adjusted to indicate $210,000, $222,000 and $230,000, the appraiser is required to explain why _________________________________.
he or she reconciled the value indication at $220,000
If an appraiser checks the box on the URAR form that states that the highest and best use of the subject property is its current use, this is considered summary support for the appraiser’s highest and best use opinion.
FALSE
