Review Questions Flashcards
Which statement BEST describes The Appraisal Foundation?
It is made up of eight U.S.-based organizations and one from Canada.
It is a federal government agency.
It is a non-profit organization established for educational and scientific purposes.
It is the organization responsible for enforcing the requirements of USPAP.
It is a non-profit organization established for educational and scientific purposes.
The Appraisal Foundation issues Valuation Advisories on recognized appraisal methods and techniques. For appraisers, compliance with these Valuation Advisories is:
Voluntary
Required by state appraisal regulatory agencies
Forbidden
Mandated by federal law
Voluntary
Which was NOT a direct result of the passage of FIRREA?
USPAP was upgraded from a voluntary to a mandatory standard
The Appraisal Foundation was established
Each state was required to set up an appraiser licensing/certification program
The financial institution regulatory structure was changed
The Appraisal Foundation was established
Which board within The Appraisal Foundation is responsible for establishing requirements for appraiser licensure and certification?
Board of Trustees (BOT)
Appraisal Standards Board (ASB)
Appraiser Qualifications Board (AQB)
Board of Governors of the Federal Reserve System (FRB)
AQB
An appraiser contacts the ASC’s National Complaint Hotline because she believes an AMC has attempted to improperly influence her. What can the appraiser expect the hotline to do?
Initiate a complaint on behalf of the appraiser
Arbitrate the complaint
Provide a referral for a complaint
Follow up on a complaint referral
Provide a referral for a complaint
The Dodd-Frank Act of 2010 requires the ASC to create and maintain a national registry of: Home builders and contractors Subprime lenders Appraisal trainees and supervisors Appraisal management companies
Appraisal management companies
Currently, what is the annual national registry fee per appraiser? $25 $40 $75 $100
$40
The ASC is composed of members appointed by the four federal financial institution regulatory agencies, plus the Bureau of Consumer Financial Protection, the Federal Housing Finance Agency, and _____________.
Department of Homeland Security
Environmental Protection Agency
National Association of Homebuilders
Department of Housing and Urban Development
HUD
A state appraisal regulatory agency issues \_\_\_\_\_\_\_\_, while a professional appraiser organization awards \_\_\_\_\_\_\_\_. Designations, credentials Credentials, designations Designations, licenses Credentials, licenses
Credentials, designations
An appraiser receives a warning letter regarding an appraisal she had completed that did not comply with USPAP. Where would this letter have come from?
Appraisal Subcommittee (ASC)
State appraisal regulatory agency
Appraisal Standards Board (ASB)
Any or all of these entities may send warning letters to appraisers
State appraisal regulatory agency
State appraisal regulatory agencies establish both standards of practice and ___________.
Rules for use of the National Appraiser Registry
Protocols for appraisals prepared for FHA loans
Criteria for licensure, certification, and recertification that meet or exceed AQB minimums
USPAP
Criteria for licensure, certification, and recertification that meet or exceed AQB minimums
Which of these is NOT a function performed by professional appraiser organizations?
Disseminating professional publications and trade journals
Issuing appraisal credentials
Offering networking opportunities
Providing legislative lobbying and advocacy
Issuing appraisal credentials
Which entity is responsible for monitoring The Appraisal Foundation to ensure it is properly fulfilling its responsibilities under Title XI of FIRREA? Appraisal Subcommittee (ASC) U.S. Department of HUD Appraiser Qualifications Board (AQB) State appraisal regulatory agencies
Appraisal Subcommittee ASC
Who is responsible for appointing members to the Appraiser Qualifications Board? Appraisal Standards Board (ASB) The Secretary of HUD The AQB appoints its own members The Board of Trustees (BOT)
The Board of Trustees (BOT)
Which board within The Appraisal Foundation has the authority to make revisions to USPAP?
Board of Trustees (BOT)
Appraisal Standards Board (ASB)
Appraiser Qualifications Board (AQB)
All boards within the Foundation have the authority to revise USPAP
Appraisal Standards Board (ASB)
An appraiser violates the laws of his state when performing an appraisal. Which entity may take disciplinary action against him?
The Appraiser Qualifications Board (AQB)
The Appraisal Standards Board (ASB)
The state appraisal regulatory agency
Any and all of these entities may pursue disciplinary action
The state appraisal regulatory agency
How often do ASC representatives perform an on-site review of each state’s appraisal licensing and certification program? Monthly Every year Every two years Every three years
Every two years
Which entity maintains a national registry of licensed and certified appraisers? Appraisal Standards Board (ASB) Appraisal Subcommittee (ASC) Appraiser Qualifications Board (AQB) National Association of REALTORS
Appraisal Subcommittee (ASC)
Before the AQB revises the Real Property Appraiser Qualification Criteria, it must first:
Expose the proposed changes and solicit comments
Demonstrate that the proposed changes will not affect the profession
Formally poll all appraisers in the United States
Receive formal approval from the U.S. Department of HUD
Expose the proposed changes and solicit comments
According to the AQB minimum criteria, an applicant for a Licensed Residential Appraiser credential must obtain \_\_\_\_\_\_\_ experience hours in no fewer than \_\_\_\_\_\_\_ months. 1,000; 6 1,000; 12 2,000; 16 2,000; 24
1,000; 6
The definition of __________ appraisal includes the phrase “One in which the property to be appraised, the form of ownership, or the market conditions are atypical.”
Complex one-to-four family residential property
Non-residential property
Limited
Non-federally related two-to-four family real property
Complex one-to-four family residential property
An applicant for a Trainee Appraiser credential must have completed his or her required appraisal courses within the \_\_\_\_\_\_ period immediately preceding the application. 6 month 3 year 5 year 10 year
5 year
A Trainee Appraiser wishes to upgrade to a Licensed Residential Appraiser credential. Under the AQB Criteria, how many additional hours of appraisal education must the Trainee Appraiser complete? 25 50 75 90
75
As the term “Trainee Appraiser” is used in the AQB Criteria, it refers to which state-specific terms?
Trainee Appraisers only
Provisional Appraisers only
Registered Appraisers only
The term “Trainee Appraiser” refers to all of these
The term “Trainee Appraiser” refers to all of these
Which type of appraisal credential does not require an applicant to possess any appraisal experience?
Licensed Residential Appraiser
Trainee Appraiser
Certified Residential Appraiser
None of these classifications requires an applicant to possess appraisal experience
Trainee Appraiser
A holder of a valid Certified Residential Appraiser credential wants to upgrade to a Certified General credential. How many additional hours of appraisal education does he or she need in order to qualify? 100 150 175 200
100
Which of these appraisal credentials allows the credential holder to appraise any one-to-four family residential property, regardless of complexity?
Licensed Residential Appraiser only
Trainee Appraiser only
Certified Residential Appraiser only
Both Licensed Residential Appraiser and Certified Residential Appraiser
Certified Residential Appraiser only
The AQB Criteria specifies that an applicant for a Certified Residential Appraiser credential must have accumulated \_\_\_\_\_ hours of appraisal experience, in no fewer than \_\_\_\_\_\_ months. 1,000; 12 1,500; 12 2,000; 16 3,000; 18
1,500; 12
An applicant for a Certified Residential Appraiser credential must possess _________ from an accredited college or university.
A Bachelor’s degree or higher
An Associate’s degree in a concentrated field of study related to business or real estate
30 semester credit hours in specified topics
Any of these
Any of these
An applicant for a Certified General Appraiser credential must have accumulated a minimum of how many hours of non-residential appraisal work? 1,000 1,500 2,000 2,500
1,500
In order to be acceptable for appraiser qualifying education, an appraisal course must include \_\_\_\_\_\_\_\_ examination. An oral An open-book A closed-book An optional
Closed-book
In order to be acceptable for appraiser qualifying education, an appraisal course must be a minimum of \_\_\_\_ hours in length. Three Seven Ten Fifteen
fifteen
Trainee Appraiser Ed is trying to complete his qualifying education courses toward becoming a Certified Residential Appraiser. Which one of these courses would NOT count toward meeting that requirement?
30-hour Residential Sales Comparison and Income Approaches
15-hour Statistics, Modeling, and Finance
7-hour USPAP Update Course
20-hour course in Appraisal Subject Matter Electives
7 hour updated USPAP course
For a distance education course to be acceptable for appraiser qualifying education, it must include a written examination. What does the term “written” mean in this requirement?
A paper exam only
An electronically-administered exam only
A paper exam or an electronically-administered exam
A written or orally-administered exam
A paper exam or an electronically-administered exam
A Certified General Appraiser wants to act as a Supervisory Appraiser. The appraiser received a formal reprimand from the state appraisal regulatory agency 18 months ago, but has had no disciplinary issues before or since that time. Is the appraiser qualified to be a Supervisory Appraiser?
Yes, because the appraiser is currently “in good standing”, and the prior action did not affect the appraiser’s eligibility to engage in appraisal practice
No, because the disciplinary action permanently disqualifies the appraiser from ever acting as a Supervisory Appraiser
Yes, because the disciplinary action occurred over one year ago
No, because a formal reprimand affects the appraiser’s legal eligibility to engage in appraisal practice
Yes, because the appraiser is currently “in good standing”, and the prior action did not affect the appraiser’s eligibility to engage in appraisal practice
A Certified Residential Appraiser wants to act as a Supervisory Appraiser. The appraiser had his certificate suspended by the state two years ago, but has had no disciplinary issues since that time. Is the appraiser qualified to be a Supervisory Appraiser?
Yes, because the appraiser is currently “in good standing”
No, because the suspension permanently disqualifies the appraiser from ever acting as a Supervisory Appraiser
Yes, because the suspension was over one year ago
No, because the appraiser must have been “in good standing” for a period of at least three years
No, because the appraiser must have been “in good standing” for a period of at least three years
The AQB requirements for Supervisory Appraisers would apply to whom?
An individual who is supervising a Certified Residential Appraiser
An individual who is supervising a Licensed Residential Appraiser
An individual who is supervising a Trainee Appraiser
All of these
An individual who is supervising a Trainee Appraiser
A state appraisal regulatory agency wants to establish a requirement that a Supervisory Appraiser must have 5 years of experience as a certified appraiser. Is the state permitted to do this?
No, the state must adopt the AQB requirements without revisions
Yes, because states may adopt requirements that exceed those of the AQB
No, because the Appraisal Subcommittee would never accept such a requirement
Yes, but the state is prohibited from enforcing the requirement if it is challenged in court
Yes, because states may adopt requirements that exceed those of the AQB
USPAP defines an appraiser as one who ___________.
Is expected to perform valuation services competently and in a manner that is independent, impartial, and objective
Is licensed or certified by the state where he or she is domiciled
Has received formal training in appraisal procedures, practice, and ethics
Has successfully completed the 15-hour National USPAP Course or its AQB-approved equivalent
Is expected to perform valuation services competently and in a manner that is independent, impartial, and objective
A Supervisory Appraiser who knowingly allows a Trainee Appraiser to communicate a misleading report has violated \_\_\_\_\_\_\_\_\_ of USPAP. The RECORD KEEPING RULE The ETHICS RULE The REPORTING RULE No part
The ETHICS RULE
Who is responsible for complying with USPAP?
Appraisal companies only
Individual appraisers only
Individual appraisers and appraisal companies jointly
An appraiser’s clients
Individual appraisers only
A Trainee Appraiser is assisting in an appraisal under a Supervisory Appraiser. The Trainee Appraiser had provided prior real estate brokerage services on the subject property within the prior three years. The Trainee Appraiser is not signing the report certification. Does USPAP require the Supervisory Appraiser to disclose the prior service provided by the Trainee Appraiser?
Yes, because the Trainee Appraiser has an obvious conflict of interest
No, however if the appraiser believes disclosure is necessary, then it should be made
Yes, the Supervisory Appraiser is required by USPAP to disclose this prior service provided by the Trainee Appraiser
No, but the Trainee Appraiser is precluded from assisting in this assignment
No, however if the appraiser believes disclosure is necessary, then it should be made
Under the ETHICS RULE, Trainee Appraisers have \_\_\_\_\_\_\_ confidentiality requirements as compared to Supervisory Appraisers. Lesser The same More stringent No
the same
Trainee Tom asks Appraiser Anne for access to a workfile for an assignment on which he had provided assistance to her. He is required to submit the report and workfile to the state appraisal regulatory agency as part of an experience audit. Anne does not want to provide access to this information. Which statement is TRUE regarding this situation?
Anne may deny access to the workfile at her discretion.
If Anne provides Tom access to the workfile, she will violate the Confidentiality section of the ETHICS RULE.
Anne must provide access to the workfile in this situation.
Tom was required to maintain his own copy of the workfile, and should have done so.
Anne must provide access to the workfile in this situation.
An appraiser does not have the competency to perform an appraisal assignment and does not wish to acquire the competency. What does USPAP require the appraiser to do in this situation?
Delegate the assignment to a Trainee Appraiser
Decline the assignment
Find another appraiser who does have the competency
Inform the client that he or she intends to complete the assignment without having or acquiring competency
Decline the assignment
When a Trainee Appraiser and a Supervisory Appraiser work together on an assignment, which one must retain custody of the workfile?
The Trainee Appraiser
The Supervisory Appraiser
They each must have separate copies of the workfile
Either, but one must take responsibility
Either, but one must take responsibility
A Supervisory Appraiser denies a Trainee Appraiser’s ability to access workfiles for appraisals on which the Trainee assisted, when the trainee has been asked to submit reports to the state appraisal regulatory agency. What part of USPAP has the Supervisory Appraiser violated? The COMPETENCY RULE The RECORD KEEPING RULE STANDARD 1 No part of USPAP has been violated
The RECORD KEEPING RULE
The SCOPE OF WORK RULE governs what aspect of an appraisal assignment?
Competency
Reporting
Development
None, because it does not apply to appraisal
Development
