Practice Test Geeks(CAR) Certified Appraisal Reviewer Practice Test
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Appraisal Reviewer Report Analysis Flashcards

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  1. When a reviewer develops an opinion of value as part of an appraisal review, this opinion must be:

    Answer: Developed in compliance with USPAP Standards 1 and 2 in addition to Standards 3 and 4

    If a reviewer develops their own value opinion, they must comply with both the appraisal development standard (Standard 1) and the review standards (Standards 3 and 4).

  2. In reviewing a report for an FHA-insured loan, a reviewer should verify that the appraiser addressed which FHA-specific requirement not found in conventional appraisals?

    Answer: Minimum Property Requirements (MPR) and Minimum Property Standards (MPS)

    FHA appraisals require assessment of Minimum Property Requirements and Minimum Property Standards, which are unique to government-backed lending programs.

  3. A reviewer finds that the appraiser's market conditions analysis section indicates a declining market, but all time adjustments in the sales comparison grid are positive. What does this indicate?

    Answer: An internal inconsistency between the market analysis and the adjustments applied

    Positive time adjustments in a declining market directly contradict the appraiser's own market analysis, representing a significant internal inconsistency.

  4. The Uniform Appraisal Dataset (UAD) was developed primarily to:

    Answer: Standardize appraisal data definitions and reporting for GSE-backed mortgage loans

    UAD standardizes data definitions, formats, and codes for appraisal fields used in GSE mortgage transactions to improve data consistency and analysis.

  5. When reviewing a retrospective appraisal, the reviewer must evaluate the appraiser's conclusions based on:

    Answer: Data and market conditions that were known or knowable as of the effective date of the original appraisal

    A retrospective appraisal must reflect market knowledge and data available as of its effective date, not subsequent information.

  6. A reviewer notes that an appraiser used a comparable sale that transferred between related parties without adjusting or disclosing this potential non-arm's-length transaction. This represents:

    Answer: A failure to investigate and disclose a potentially non-arm's-length transaction affecting comparability

    Non-arm's-length transactions must be identified and either excluded or adjusted with disclosure because they may not reflect market value.

  7. Under USPAP, which extraordinary assumption, if found to be false, would most significantly undermine an appraisal's credibility?

    Answer: The assumption that the property is free of environmental contamination when a known concern exists

    Assuming no contamination when a known concern exists is a high-risk extraordinary assumption because its falsity would materially affect value.