Supervisor-Trainee Ch 1-4 Flashcards
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
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?
No, because the appraiser must have been “in good standing” for a period of at least three years
A state appraisal regulatory agency issues ________, while a professional appraiser organization awards ________.
Credentials, designations
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?
Yes, because states may adopt requirements that exceed those of the AQB
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 RECORD KEEPING RULE
A Supervisory Appraiser may affix a Trainee Appraiser’s signature to an appraisal report:
If authorization is given in a specific assignment
A Supervisory Appraiser who knowingly allows a Trainee Appraiser to communicate a misleading report has violated _________ of USPAP.
The ETHICS RULE
A Trainee Appraiser assists a Supervisory Appraiser in the performance of a real property appraisal. The Trainee Appraiser inspects the property, but the Supervisory Appraiser does not. Both appraisers sign the certification. Which of these statements in the certification would be appropriate?
The Trainee Appraiser has made a personal inspection of the subject property. The Supervisory Appraiser has not made an inspection of the subject property.
A Trainee Appraiser assists a Supervisory Appraiser in the performance of an appraisal. The Trainee Appraiser’s only contribution to the assignment is assisting in the property inspection and preliminary MLS research into comparable sales. Should the Trainee Appraiser sign the certification in this appraisal report?
No, because the trainee’s contribution to the assignment was limited. If the Trainee Appraiser is merely being acknowledged in the appraisal report as having provided significant assistance – but does not sign the certification – then it is not always necessary to disclose any current or prospective interest or prior services that the trainee may have provided regarding the subject property. However, if the Trainee Appraiser or Supervisory Appraiser believes such a disclosure is necessary to facilitate intended user understanding, then the disclosure should be made.
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?
No, however if the appraiser believes disclosure is necessary, then it should be made
A Trainee Appraiser makes a minor error in an appraisal that does not affect the value conclusion. Is this a violation of USPAP?
No, because USPAP does not require perfection
A Trainee Appraiser signs the letter of transmittal of an appraisal report, but does not sign the certification. Which statement is TRUE regarding this situation?
The Trainee Appraiser must sign the certification because he has signed the letter of transmittal.
A Trainee Appraiser who signs a certification in a real property appraisal report has:
Accepted full responsibility for the assignment results and the report
A Trainee Appraiser wishes to take the examination to become a Certified Residential Appraiser. When may he take the exam?
Only after he completes his education and experience requirements
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?
75
A workfile access and retrieval agreement between a Trainee Appraiser and a Supervisory Appraiser:
May be written or oral
According to the AQB Criteria, an applicant for a Certified General Appraiser credential must have accumulated _____ hours of appraisal experience, during no fewer than ______ months.
3,000; 18
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
An applicant for a Certified General Appraiser credential must have _________ from an accredited college or university.
A Bachelor’s degree or higher
An applicant for a Certified General Appraiser credential must have accumulated a minimum of how many hours of non-residential appraisal work?
1500
An applicant for a Certified Residential Appraiser credential must have completed how many hours of appraisal education?
200
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
An applicant for a Trainee Appraiser credential must have completed his or her required appraisal courses within the ______ period immediately preceding the application.
5 year
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?
Provide a referral for a complaint
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?
Decline the assignment
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?
State appraisal regulatory agency
An appraiser violates the laws of his state when performing an appraisal. Which entity may take disciplinary action against him?
The state appraisal regulatory agency
An appraiser wishes to perform an appraisal assignment but he does not possess the necessary competency. What are his options under USPAP?
Acquire the necessary competency or decline the assignment
An individual submits an application to become a certified appraiser. Who is responsible for approving or disapproving the application?
The state appraisal regulatory agency
Appraiser Amy agrees to present a seminar for a small lending institution to explain appraisal issues to the institution’s staff. Does the ETHICS RULE of USPAP apply to Amy in performing this activity?
Yes, because Amy is acting as an appraiser
Appraiser Marie holds a valid Licensed Residential Appraiser Credential, and she wants to upgrade to a Certified Residential Appraiser credential. How many additional hours of appraisal education does she need, according to the AQB?
50
As the term “Trainee Appraiser” is used in the AQB Criteria, it refers to which state-specific terms?
Registered Appraisers, Provisional Appraisers, Trainee Appraisers
At the beginning of the Trainee Appraiser’s career, who is likely to bear primary responsibility for the scope of work determination in an appraisal assignment?
The Supervisory Appraiser
Before the AQB revises the Real Property Appraiser Qualification Criteria, it must first:
Expose the proposed changes and solicit comments
Currently, what is the annual national registry fee per appraiser?
40
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 or an electronically-administered exam
How often do ASC representatives perform an on-site review of each state’s appraisal licensing and certification program?
Every two years
I am an appraiser in a large firm and assist several of the senior appraisers in appraisal research, analysis, and report preparation. In a recent USPAP class, the instructor said that associates must have either copies of their workfiles, or an agreement with their employer regarding access to the workfiles, for appraisals on which they provided significant assistance. Does that agreement have to be in writing?
No. USPAP does not specify whether the access and retrieval arrangements you make must be in writing. The RECORD KEEPING RULE states: An appraiser must have custody of the workfile, or make appropriate workfile retention, access, and retrieval arrangements with the party having custody of the workfile. This agreement can be either written or oral. However, there is less chance for a misunderstanding about the agreement if it is in writing.
In a market value appraisal, USPAP requires appraisers to analyze, if available in the normal course of business:
All sales of the subject property that occurred within 3 years prior to the effective date of the appraisal
In a market value appraisal, USPAP requires appraisers to analyze, if available in the normal course of business:
All sales of the subject property that occurred within 3 years prior to the effective date of the appraisal
In an appraisal assignment, when is the workfile required to be in existence?
Prior to the issuance of any report or communication of assignment results
In order to be acceptable for appraiser qualifying education, an appraisal course must be a minimum of ____ hours in length.
Fifteen
In order to be acceptable for appraiser qualifying education, an appraisal course must include ________ examination.
A closed-book
May a Supervisory Appraiser provide blanket authorization for an experienced Trainee Appraiser to use the supervisor’s signature?
No, this is specifically prohibited by the ETHICS RULE
STANDARD 1 in USPAP establishes the requirements for:
Developing a real property appraisal
State appraisal regulatory agencies establish both standards of practice and ___________.
Criteria for licensure, certification, and recertification that meet or exceed AQB minimums
The Appraisal Foundation issues Valuation Advisories on recognized appraisal methods and techniques. For appraisers, compliance with these Valuation Advisories is:
Voluntary. From time to time, The Appraisal Foundation also issues Valuation Advisories, which contain guidance regarding recognized valuation methods and techniques. Compliance with this guidance is purely voluntary; these Valuation Advisories are not intended to be enforceable. (Ch 2, The Foundation and Its Boards)
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.
1,500; 12
The AQB requirement is that an applicant for a Trainee Appraiser credential must have completed _____ hours of appraisal education, including the __________ course.
75, 15-Hour National USPAP or equivalent
The AQB requirements for Supervisory Appraisers would apply to whom?
An individual who is supervising a Trainee Appraiser
The AQB requires an appraiser to have at least _____ years of experience as a certified appraiser before he or she may act as a Supervisory Appraiser.
Three
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 Housing and Urban Development
The ASC’s National Complaint Hotline will provide referrals for complaints against:
Appraisers, lenders, AMCs or others
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
The Dodd-Frank Act of 2010 requires the ASC to create and maintain a national registry of:
Appraisal management companies
The employing company for a Trainee Appraiser has policies that do not comply with USPAP. What should the Trainee Appraiser do?
Take whatever steps are necessary to ensure USPAP compliance
The SCOPE OF WORK RULE applies in:
Appraisal or appraisal review assignments only
The SCOPE OF WORK RULE governs what aspect of an appraisal assignment?
Development
The three independent boards within The Appraisal Foundation include:
Appraisal Standards Board, Appraiser Qualifications Board, Board of Trustees
To obtain a Licensed Residential Appraiser credential, an applicant must obtain ______ creditable hours of appraisal education.
150
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?
7-hour USPAP Update Course
Trainee Appraisers have ________ workfile responsibilities as Supervisory Appraisers.
Equal
Trainee Tammy is working with Supervisor Sam. Tammy has been assisting Sam for several months in the development of appraisals and the preparation of reports. Tammy then leaves Sam’s office to work for Supervisor Sally, because Sally can give her more work and thus she will accumulate experience hours faster. Sam is unhappy to lose Tammy, and his unhappiness eventually becomes a deep-rooted grudge against her. One year later, Tammy has completed her 1,500 hours of appraisal experience and she applies to her state appraisal regulatory agency to be approved to take the Certified Residential Appraiser examination. The regulatory agency requests copies of sample appraisal reports that Tammy had assisted on while she was working with Sam. Tammy contacts Sam and asks for access to his workfiles so she can make copies of the reports to submit to the state regulatory agency. Sam refuses to provide her access to the files. Is Sam’s refusal to provide Tammy with access to the workfiles a violation of USPAP?
Yes!
Trainee Tina assists Supervisor Sam in a real property appraisal assignment; however Tina does not sign the certification. Where does USPAP require Sam to disclose the extent of Tina’s assistance in the Appraisal Report?
Anywhere
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 must provide access to the workfile in this situation.
Trainee Tom assists Supervisor Sandy in a real property appraisal assignment; however Tom does not sign the certification. Where does Tom’s name have to appear in the report?
In the certification. The name of the person who provided significant real property appraisal assistance must appear in the certification.
Two appraisers perform an appraisal assignment together. Appraiser A retains the workfile and Appraiser B has made access and retrieval arrangements. Are there any conditions under which USPAP allows Appraiser A to deny Appraiser B access to the workfile?
Yes. USPAP does not set conditions for workfile access and retrieval.However, the RECORD KEEPING RULE states: An appraiser having custody of a workfile must allow other appraisers with workfile obligations related to an assignment appropriate access and retrieval for the purpose of: submission to state appraiser regulatory agencies;
compliance with due process of law;
submission to a duly authorized professional peer review committee; or
compliance with retrieval arrangements. (Bold added for emphasis.) In this scenario, if Appraiser B is seeking access for purposes outside those specified, access may be denied.
Under the ETHICS RULE, Trainee Appraisers have _______ confidentiality requirements as compared to Supervisory Appraisers.
The same
Under the SCOPE OF WORK RULE, who is responsible for identifying the appraisal problem?
The appraiser
USPAP defines an appraiser as one who ___________.
Is expected to perform valuation services competently and in a manner that is independent, impartial, and objective
USPAP states that an appraiser may not affix the signature of another appraiser ___________.
Without his or her consent
USPAP states that competence does not require ___________.
Perfection
What are the two written report options specified in USPAP STANDARD 2?
Appraisal Report and Restricted Appraisal Report
When a Trainee Appraiser and a Supervisory Appraiser work together on an assignment, which one must retain custody of the workfile?
Either, but one must take responsibility
Which approach or approaches must be developed in every real property appraisal assignment?
Whatever approach or approaches are necessary for credible results
Which board within The Appraisal Foundation has the authority to make revisions to USPAP?
Appraisal Standards Board (ASB)
Which board within The Appraisal Foundation is responsible for establishing requirements for appraiser licensure and certification?
Appraiser Qualifications Board (AQB)
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)
Which entity maintains a national registry of licensed and certified appraisers?
Appraisal Subcommittee (ASC
Which federal entity maintains oversight authority over state appraisal regulatory agencies?
Appraisal Subcommittee (ASC)
Which law mandated that all states must establish a program for appraiser licensing and certification?
FIRREA
Which of these appraisal credentials allows the credential holder to appraise any one-to-four family residential property, regardless of complexity?
Certified Residential Appraiser only
Which of these is NOT a function performed by professional appraiser organizations?
Issuing appraisal credentials
Which of these is the MOST appropriately rounded final value opinion?
2050000
Which standard in USPAP sets forth the requirements for developing a real property appraisal?
STANDARD 1
Which statement BEST describes The Appraisal Foundation?
It is a non-profit organization established for educational and scientific purposes.
Which type of appraisal credential allows an appraiser to appraise all types of real property?
Certified General Appraiser
Which type of appraisal credential does not require an applicant to possess any appraisal experience?
Trainee Appraiser
Which USPAP Standard establishes requirements for reporting a real property appraisal?
STANDARD 2
Which was NOT a direct result of the passage of FIRREA?
The Appraisal Foundation was established. The Appraisal Foundation was established in 1987. The FIRREA legislation was passed in 1989.
Who is responsible for appointing members to the Appraiser Qualifications Board?
The Board of Trustees (BOT)
Who is responsible for complying with USPAP?
Individual appraisers only
Who provides grants to The Appraisal Foundation to support the work of the ASB and AQB?
Appraisal Subcommittee
With regard to the ASB and USPAP, what are Advisory Opinions considered?
Other communications from the ASB
An appraiser wishes to perform an appraisal review assignment but she does not possess the necessary competency. What is the FIRST action she must take, according to the COMPETENCY RULE?
Disclose the lack of competency to the client before agreeing to perform the assignment
An access and retrieval agreement between a Trainee Appraiser and a Supervisory Appraiser:
May be written or oral
