Practice Test Geeks(CAR) Certified Appraisal Reviewer Practice Test
← All CAR Flashcard Decks

Financing & Lending Standards in Appraisal Review Flashcards

7 cards from real CAR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Financing & Lending Standards in Appraisal Review flashcards as text

  1. A 'field review' in the appraisal lending context involves:

    Answer: An exterior drive-by or inspection of the subject property and selected comparables to verify reported data

    A field review includes a physical drive-by or exterior observation of the subject property and comparables to verify that the descriptions and condition ratings in the appraisal are accurate.

  2. Under USPAP Standard 3, what is the reviewer's required scope when reviewing a real property appraisal?

    Answer: The reviewer must develop an opinion about the quality of the work under review

    USPAP Standard 3 requires the reviewer to develop an opinion about the quality—including completeness, adequacy, relevance, and reasonableness—of the work under review.

  3. The Interagency Appraisal and Evaluation Guidelines state that appraisals for federally related transactions must be based on:

    Answer: Market value as defined in the regulatory guidelines

    Federal regulations require that appraisals for federally related transactions reflect market value as defined in the Interagency Guidelines, not contract price or assessed value.

  4. When an appraisal review identifies a significant error in the original appraisal, the reviewer's primary obligation is to:

    Answer: Document the finding and communicate it to the client in the review report

    The reviewer's obligation under USPAP Standard 3 is to document findings and communicate them to the client; reporting to the board may be appropriate but is secondary to the review report.

  5. Which of the following actions violates RESPA's prohibition on kickbacks in real estate settlement services?

    Answer: Paying referral fees to a real estate agent for sending appraisal business

    RESPA prohibits giving or accepting kickbacks, referral fees, or unearned fees in connection with real estate settlement services, including appraisal referrals.

  6. The Uniform Collateral Data Portal (UCDP) is used primarily to:

    Answer: Electronically submit appraisal data to Fannie Mae and Freddie Mac for collateral risk assessment

    The UCDP is the GSE-mandated portal through which lenders submit electronic appraisal data files to Fannie Mae and Freddie Mac prior to loan delivery.

  7. When reviewing a Form 2055 (Exterior-Only Inspection) appraisal, the reviewer should recognize that this report type:

    Answer: Relies on an exterior-only observation and public record data rather than an interior inspection

    Form 2055 is an exterior-only inspection report where the appraiser observes the exterior and relies on public data, without inspecting the interior, making it inherently more limited in scope.