Financing & Lending Standards in Appraisal Review Flashcards
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Read the first 7 Financing & Lending Standards in Appraisal Review flashcards as text
Fannie Mae's Selling Guide designates which form as the standard report for a single-family residential appraisal of a detached property?
Answer: Form 1004 (Uniform Residential Appraisal Report)
Fannie Mae Form 1004, the Uniform Residential Appraisal Report, is the standard form for single-family detached residential properties.
When reviewing a condominium appraisal for lending purposes, which comparable selection approach best satisfies GSE guidelines?
Answer: Comparables should primarily come from within the same project or competing condominium projects
GSE guidelines require that condominium comparables be drawn primarily from within the same project or truly competing projects to reflect the correct market segment.
Under FHA appraisal requirements, the appraiser must specifically identify and report:
Answer: Health and safety issues that affect the property's habitability and marketability
FHA requires appraisers to identify and report health and safety conditions because FHA-insured loans must meet Minimum Property Requirements (MPR) protecting occupants.
The 'as-is' value in a lending appraisal refers to:
Answer: The property's market value in its current condition as of the effective date of the appraisal
'As-is' value reflects the property's market value in its present condition on the effective date, without assuming any future improvements or changes.
A lender submits additional comparable sales to an appraiser and requests reconsideration of value. Under AIR and USPAP, the appraiser should:
Answer: Objectively evaluate the new comparables and respond with appropriate analysis
A reconsideration of value request is permissible when it provides legitimate market data; the appraiser must objectively evaluate the information and document their response.
The primary purpose of an appraisal review in the mortgage lending process is to:
Answer: Verify that the appraisal supports the loan amount and complies with applicable guidelines and regulations
In mortgage lending, appraisal review confirms that the appraisal is credible, supports the collateral value for the loan, and complies with lender, GSE, and regulatory requirements.
VA appraisals for home loans are conducted by fee appraisers who are assigned through:
Answer: A VA fee panel rotation system that assigns appraisers by geography
The VA assigns appraisals through a rotation system from its fee panel to ensure independence and geographic competency, not through lender or borrower selection.