Deck #2 Flashcards
5 attributes an appraiser should have:
1.specialized knowledge
2.experience
3.objectivity
4.independence
5.integrity
TAF
The Appraisal Foundation
AQB
Appraisal Qualifications Board: responsible for establishing minimum qualifications for licensing and certifying real estate appraisers.
ASB
Appraiser Standards Board: responsible for the development, interpretation, and revision of the USPAP
ASC
Appraisal subcommitee: Government entity, oversees the appraisal regulatory programs
Advisory Opinions
guidance materials written by the ASB that illustrate the applicability of appraisal standards
Exposure Draft
communication released for public comment that includes all proposed changes for the USPAP
FFEIC
Federal Financial Institutions Examination Council a formal interagency body empowered to prescribe uniform principles, standards, and report forms for the federal examination of financial institutions
In order to fund the activities of the Appraisal Subcommittee, what did the ASC establish?
a national registration fee
What entity has authority to oversee the Appraisal Foundation?
Appraisal Subcommittee
Any real estate related financial transaction which a federal financial institution’s regulatory agency requires the services of an appraisal:
federally related transaction
What section of the USPAP includes a description of the overall structure of the USPAP?
the Preamble
Which of the following is treated as “other communication by the appraisal standards board?
advisory opinions
What is the difference between USPAP Standards and Advisory Opinions?
Standards have the full force and effect of USPAP and Advisory Opinions do not.
6 steps to the appraisal process:
1.Identify the problem
2.Scope of work
3.Data collection and analysis
4.Application of the approaches to value
5.Reconciliation of value indications and final value opinion of value
6.Report of defined value opinions
In USPAP, appraisal is divided into which two types of activity?
development and reporting; development is what you do and reporting is what you communicate
the USPAP structure is comprised of what 5 parts?
Preamble
Definitions
Rules
Standard Rules
Statements on Appraisal Standards
3 “other communications listed in USPAP
- Advisory Opinions (AOs)
- FAQs
- the Index
5 appraisal disciplines:
- real property appraisal
- appraisal review
- mass appraisal
- personal property appraisal
- business appraisal
The appraisal process applies to all disciplines, but was originally created for which specific value discipline?
real property appraisal
USPAP is structured to follow_____
the appraisal process
What was the name of the appraisal organization that formed in 1932 that later became the founding sponsor of the Appraisal Foundation?
American Institute of Real Estate Appraisers
Prior to the collapse of the stock market in 1929, what happened in the real estate market in 1925?
Real estate values peaked
What label is associated with the stock market crash of 1929?
Black Tuesday
What was the name of the National Association of Realtors when it was originally established in 1908?
National Association of Real Estate Exchanges
USPAP
Uniformed Standards of Professional Appraisal Practice
3 boards when the Appraisal Foundation was started:
- Board of Trustees (BOT)
- Appraiser Qualifications Board (AQB)
- The Appraisal Standards Board (ASB)
What is the primary purpose of USPAP?
to promote and maintain public trust in appraisal practice
What did the Ad Hoc committee believe was necessary in order to implement the standards they adopted?
creation of a new organization
What event was most influential in created the Appraisal Foundation?
savings and loan crisis of the 1980s
What disciplines did developers include in USPAP?
all appraisal and review appraisal disciplines
3 primary functions of the BOT (Board of Trustees):
- appoint members to the ASQ and the ASB
- ensure the foundation is adequately funded
- monitor the performance of TAF and the ASQ and ASB plus the two advisory counsels (IAC and TAFAC)
TAFAC
The Appraisal Foundation Advisory Counsel - comprised of nonprofit and government agencies
IAC
The Industry Advisory Counsel - made from for profit entities with an interested in valuation
The appraiser client’s assignment requires compliance to USPAP. What is this an example of?
How USPAP achieves authority
What ASB communication is released for public comment that includes all proposed changes to USPAP?
an Exposure Draft
What do appraisal organizations, government agencies, client groups, work groups, appraisers, and members of the public have in common?
they can all submit questions and concerns to the Appraisal Standards Board
What are advisory opinions?
guidance material issued by the ASB that illustrate the applicability of appraisal standards
Who is responsible for the development and revision of USPAP?
the ASB
To fund the Appraisal Subcommittee, what was established?
a national registration fee
What entity has the authority from Title XI of FIRREA to oversee the activites of The Appraisal Foundation, including both the ASB and the AQB?
The Appraisal Subcommittee
What section of the USPAP covers the detailed requirements for specific disciplines and assignment types?
the Standards
What section of USPAP includes a description of the overall structure of USPAP?
the Preamble
