Practice Test Geeks(CAR) Certified Appraisal Reviewer Practice Test
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Appraisal Reviewer Compliance & Standards 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 Appraisal Reviewer Compliance & Standards flashcards as text

  1. Which of the following is a permissible reason for an appraisal reviewer to expand the scope of work beyond what was originally agreed upon with the client?

    Answer: New information emerges during the review that affects the assignment

    If new information emerges during the review that is material to the assignment, it may be necessary to expand the scope of work to maintain credibility.

  2. Under the Dodd-Frank Act, which entity is prohibited from coercing an appraiser to reach a predetermined value on a consumer mortgage transaction?

    Answer: Any covered person, including lenders, servicers, and AMCs

    Dodd-Frank Section 1472 prohibits any covered person — including lenders, servicers, appraisal management companies, and real estate agents — from coercing appraisers.

  3. Which USPAP concept requires the reviewer to correctly employ recognized methods and techniques sufficient to produce credible assignment results?

    Answer: Competency Rule

    The Competency Rule requires appraisers and reviewers to have the knowledge and experience to complete the assignment competently.

  4. In reviewing a residential appraisal, the reviewer notes the appraiser applied a $5,000 net adjustment to a comparable with a gross adjustment of $55,000 on a $200,000 sale. This is most likely a concern because:

    Answer: Large gross adjustments indicate the comparable may not be truly comparable

    Large gross adjustments relative to sale price suggest the comparable is dissimilar, raising concerns about the validity of the comparison.

  5. Which review document type is typically used by GSEs such as Fannie Mae to flag appraisals that require additional scrutiny before purchase?

    Answer: Collateral Underwriter Risk Flag

    Fannie Mae's Collateral Underwriter (CU) generates risk scores and flags that signal appraisals requiring additional review before loan purchase.

  6. A reviewer finds an appraisal that selectively omits unfavorable market data while including only supportive sales. This practice is best classified as:

    Answer: Cherry-picking, which violates USPAP's misleading communication prohibition

    Selectively omitting unfavorable data to support a predetermined conclusion constitutes misleading communication, violating USPAP's Ethics Rule.

  7. Under FIRREA, which government body has the authority to exclude an appraiser from conducting appraisals for federally regulated lenders?

    Answer: The Appraisal Subcommittee (ASC)

    The Appraisal Subcommittee maintains a national registry and has authority under FIRREA to exclude appraisers from federally related transactions.