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09 Report Writing and Case Studies > Ch 7-8 Quiz Report Writing and Case Studies > Flashcards

Ch 7-8 Quiz Report Writing and Case Studies Flashcards

1
Q

A narrative appraisal report can be used to comply with the minimum content requirements of a Restricted Appraisal Report.

A

TRUE

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2
Q

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

A

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

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3
Q

A Restricted Appraisal Report may be suitable for multiple intended users.

A

FALSE

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4
Q

A signed certification is __________________ .

A

An integral part of an appraisal report

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5
Q

A signed certification is an integral part of an appraisal report.

A

TRUE

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6
Q

A state passes a law requiring appraisers to keep their appraisal workfiles for a minimum of 8 years. Is this a jurisdictional exception?

A

No

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7
Q

A tightening of underwriting standards in residential mortgage lending has led to clients asking for more information in appraisal reports than ever before.

A

TRUE

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8
Q

According to USPAP, where must the name of a person who provides real property appraisal assistance be stated in an appraisal report?

A

In the certification

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9
Q

After you finish writing a narrative report, it is a good idea to set it aside for a day or two and then read it to ensure that it can be properly understood by intended users.

A

TRUE

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10
Q

All interior inspections for real property appraisals should be completed in the same manner.

A

FALSE

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11
Q

An appraiser may obtain competency during the performance of an assignment.

A

TRUE

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12
Q

An appraiser needs to disclose the research and analyses that were performed, but does NOT have to disclose the research and analyses that were NOT performed.

A

FALSE

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13
Q

Appraisals made with interior inspections are always superior to appraisals made with exterior-only inspections.

A

FALSE

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14
Q

Assignment conditions include:

A

Hypothetical conditions, Laws and regulations, Jurisdictional exceptions, Extraordinary assumptions

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15
Q

Assignment conditions would include:

A

Jurisdictional exceptions, Extraordinary assumptions, Laws and regulations

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16
Q

Barb is trying to complete an appraisal without making an inspection of the property, but she finds that insufficient information is available about the subject’s physical characteristics. Which of these are ACCEPTABLE options for Barb?

A

Withdraw from the assignment. Use an extraordinary assumption about the information. Modify the scope of work to include gathering the information.

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17
Q

Before an appraiser can determine an appropriate scope of work, he or she must first __________.

A

Identify the problem

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18
Q

Bernie is completing an appraisal without an inspection of the subject property. Where in his report must he disclose that he did not inspect the property?

A

In the certification statement

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19
Q

Boilerplate statements regarding the selection and weighting of comparable sales is a “best practice” for residential appraisers.

A

FALSE

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20
Q

Client requests for additional analysis and information can ________ the scope of work beyond the minimum that is specified on the URAR form.

A

Expand

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21
Q

Don is asked by a prospective client to do an appraisal without making any inspection of the subject property. Don must ____________.

A

Be able to obtain sufficient reliable information about the subject property’s physical characteristics

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22
Q

Eric develops an appraisal without making any inspection of the subject property. What are his disclosure obligations?

A

He must disclose in the report certification that he did not make an inspection of the subject property

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23
Q

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

A

TRUE

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24
Q

If a client asks an appraiser not to develop the cost approach in an assignment, the appraiser does not need to explain the omission of the cost approach in the report, because the client is already aware of the omission.

A

FALSE

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25
Q

If an appraiser receives significant real property appraisal assistance in an assignment, but does not disclose it in the report:

A

He has provided a misleading report

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26
Q

If Sara does an appraisal with an exterior-only inspection:

A

She must ensure that sufficient information is available about the interior to enable her to develop credible results

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27
Q

If you and your client have an understanding that you are making an interior inspection of the subject property:

A

There is still a need to disclose the extent of the inspection in the report

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28
Q

If, in developing your appraisal, you excluded something you believe an intended user may be concerned about, what should you do?

A

Explain in the report why you did not include or address an item of such potential concern

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29
Q

In _______________ report, it is considered a best practice to include a letter of transmittal.

A

A narrative

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30
Q

In a narrative appraisal report, each required content item must be covered in the same depth and detail.

A

FALSE

31
Q

In a narrative appraisal report, general assumptions and limiting conditions are typically included in an addendum, and are referenced in the body of the report or the transmittal letter.

A

TRUE. In the narrative appraisal report, general assumptions and limiting conditions are typically included in the appraisal’s addendum, but referenced elsewhere within the transmittal letter or body of the report. (Ch 7, General Assumptions and Limiting Conditions)

32
Q

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

A

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

33
Q

In a narrative appraisal report, it is considered a best practice to include a letter of transmittal.

A

TRUE

34
Q

In a residential mortgage appraisal assignment, Fannie Mae does not permit an appraiser to do work that is in addition to the scope of work that is pre-printed on the URAR report form.

A

FALSE

35
Q

In addition to the level of detail, what is the difference between an Appraisal Report and a Restricted Appraisal Report?

A

A Restricted report is only appropriate in situations where there is one intended user

36
Q

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.

A

FALSE

37
Q

In order to be effective, scope of work disclosures:

A

Need not be lengthy or technical

38
Q

In the appraisal report, a disclosure clarifying the extent of the inspection can provide additional information to intended users, and may also ________________.

A

Limit the appraiser’s liability

39
Q

In which section of a narrative appraisal report do appraisers usually include general assumptions and limiting conditions?

A

Addendum. The assumptions and limiting conditions are usually contained with the addendum of the appraisal report. (Ch 7, Appraisal Report Item Checklist and Suggested Order)

40
Q

Irving is asked to complete a “drive-by” (exterior-only inspection) appraisal on a single-family home in a rural area for a Fannie Mae lender. When he drives out to the property, he realizes that it cannot be seen from the road. Which statement is TRUE regarding this situation?

A

He must be able to view the property in order to perform a “drive-by” appraisal.

41
Q

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.

A

TRUE. While you can explain the scope of work in various places throughout the report, it will be more clearly understood by the intended user if it is provided and described in its own properly-indicated section of the report. (Ch 7, Scope of Work)

42
Q

Residential appraisers who primarily use form reports are usually not accustomed to discussing assumptions and limiting conditions with their clients.

A

TRUE

43
Q

The ____________ is intended as a “saving clause” which preserves the balance of USPAP if compliance with a part of USPAP is precluded by law or regulation.

A

JURISDICTIONAL EXCEPTION RULE

44
Q

The current URAR form should NOT be used to report appraisals for ___________ intended uses.

A

Non-mortgage lending

45
Q

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

A

TRUE

46
Q

The SCOPE OF WORK RULE essentially states:

A

An appraiser is required to complete only the work necessary to produce credible results for the assignment

47
Q

The SCOPE OF WORK RULE provides flexibility to the appraiser, but along with that flexibility comes ___________.

A

Responsibility

48
Q

The type and extent of an interior real property inspection will vary based on ____________ of the appraisal.

A

The intended use

49
Q

The type and extent of an interior real property inspection will vary based on the intended use of the appraisal.

A

TRUE

50
Q

The workfile for a Restricted Appraisal Report must contain sufficient information to produce an Appraisal Report.

A

TRUE

51
Q

USPAP permits an appraiser may obtain competency during the performance of an assignment.

A

TRUE

52
Q

USPAP prohibits an appraiser from developing a real property appraisal if the appraiser did not inspect the property.

A

FALSE

53
Q

USPAP requires a positive statement of competency in every appraisal report.

A

FALSE

54
Q

What are the four sections into which some appraisal organizations recommend separating a narrative appraisal report?

A

Introduction, appraisal problem and scope of work, presentation of the data, analysis and conclusion

55
Q

What does a well-written appraisal report do for the client?

A

Instill confidence that the appraiser has properly and professionally performed the steps necessary to produce a credible opinion of value

56
Q

What does Fannie Mae require, as a minimum, for an exterior-only inspection?

A

The appraiser must view the exterior of the property from at least the street

57
Q

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

A

By separately explaining and describing each of the four test criteria

58
Q

What is the idea behind the SCOPE OF WORK RULE?

A

Give appraisers the flexibility to treat each assignment differently

59
Q

What is the primary difference between the Appraisal and Restricted types of appraisal reports?

A

Restricted reports contain much less detail and narrative description

60
Q

What is the usual reason that lender clients request “desktop” appraisals?

A

To save time and/or money

61
Q

When disclosing the use of a hypothetical condition in a report, an appraiser must also include a statement that its use might have affected the assignment results.

A

TRUE

62
Q

When writing a narrative appraisal report, how might an appraiser utilize an appraisal report form?

A

As a rough guide to ensure that all pertinent information is included

63
Q

Which of the following is ALWAYS an intended user of an appraisal report?

A

The client

64
Q

Which of these is a USPAP requirement?

A

The appraisal report must contain sufficient information to enable the intended users of the appraisal to understand the report properly

65
Q

Which of these should be used in a well-written narrative appraisal report?

A

Short, crisp sentences. Good grammar. Bullet point lists. Neighborhood description. Properly acknowledged sources of quotes. A glossary

66
Q

Which of these statements are true regarding USPAP reporting requirements?

A

USPAP does not set forth or suggest a specific way to address the items it requires to be addressed in an appraisal report.USPAP requires that certain items be addressed in all Appraisal Reports and Restricted Appraisal Reports. The USPAP-required items do not need to be addressed in a specific location or section of an appraisal.

67
Q

Which statement are TRUE regarding a narrative appraisal report?

A

Narrative reports are more common in the appraisal of non-residential properties. A narrative report can be written as a Appraisal or Restricted report. A narrative report is written to meet the client’s information requirements.

68
Q

Which statement is TRUE regarding an inspection for an FHA appraisal?

A

It is more in-depth than the minimum inspection required by Fannie Mae

69
Q

Which statement is TRUE regarding Fannie Mae and the pre-printed scope of work disclosure on the URAR form (Fannie Mae 1004)?

A

Fannie Mae does not permit an appraiser to do less than the pre-printed scope of work

70
Q

Which statements are true regarding general assumptions and limiting conditions?

A

Many appraisers attach them to the appraisal contract and require client acknowledgment before beginning the assignment.They are usually included in the addendum to the report. They limit or restrict the appraiser’s responsibilities.

71
Q

Who determines the form, format, and style of an appraisal report?

A

The appraiser and the intended user

72
Q

Why is proper disclosure of scope of work required by USPAP?

A

Because clients and intended users rely on the assignment results

73
Q

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

A

Because it is your opportunity to make a positive first impression

09 Report Writing and Case Studies (13 decks)

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