Appraisal Reviewer Compliance & Standards Flashcards
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Read the first 7 Appraisal Reviewer Compliance & Standards flashcards as text
Under USPAP, when is a Restricted Appraisal Report appropriate for a review assignment?
Answer: When the intended use is limited to the client and no other intended users
A Restricted Appraisal Report is appropriate when use is restricted to the client only, with no other intended users.
Which federal regulation requires appraisal reviews for federally related transactions above the appraisal threshold?
Answer: FIRREA Title XI
FIRREA Title XI established appraisal requirements for federally regulated financial institutions, including review requirements for federally related transactions.
A reviewer disagrees with the appraiser's comparable selection but the report is otherwise USPAP-compliant. What is the proper course of action?
Answer: Issue a negative review opinion and detail the reasons for disagreement
When a reviewer disagrees with an appraiser's work, a negative review opinion must be issued with specific reasons documented.
Which USPAP standard governs the reporting of review results in written form?
Answer: Standard 4
Standard 4 governs the communication of appraisal review results in written reports.
In a review assignment, when must the reviewer disclose a prior service involving the subject property?
Answer: In the certification within the review report
USPAP requires disclosure of any prior services involving the subject property within the certification of the review report.
Which condition allows an appraisal reviewer to assume the characteristics of the subject property without independent verification?
Answer: Extraordinary assumption
An extraordinary assumption assumes uncertain information as fact without verification, affecting the assignment results if found to be false.
Under the Interagency Appraisal and Evaluation Guidelines, which requirement applies to the selection of appraisers for federally related transactions?
Answer: The appraiser must be independent from the loan production function
The Interagency Guidelines require that appraisers be independent from the loan production function to avoid conflicts of interest.