Industry Regulations & Compliance Flashcards
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Read the first 7 Industry Regulations & Compliance flashcards as text
Under USPAP, which departure provision allows an appraiser to omit normally required steps when the client agrees in writing?
Answer: Departure rule (pre-2006)
The Departure Rule (eliminated in the 2006 USPAP edition) allowed appraisers to depart from specific requirements if certain conditions were met and the client agreed.
The Dodd-Frank Wall Street Reform Act placed appraisal management companies under the oversight of which federal agencies?
Answer: The federal banking regulators through the ASC
Dodd-Frank strengthened AMC oversight by requiring federal banking regulators, coordinated through the ASC, to establish minimum standards for AMC registration.
A reviewer identifies that an appraisal used a sales comparison approach but the appraiser selected only foreclosure sales as comparables. Which USPAP standard is most directly violated?
Answer: Standard 1-4(a) — market data analysis
Standard 1-4(a) requires the appraiser to use comparable sales that are sufficiently similar; systematically selecting distressed sales without analysis violates this requirement.
Under the Equal Credit Opportunity Act (ECOA), lenders must provide applicants a copy of the appraisal within how many days of completing the appraisal?
Answer: Promptly upon completion and no later than 3 business days before consummation
ECOA (Regulation B) requires lenders to provide a copy promptly upon completion, and no later than 3 business days before loan consummation.
Which entity publishes the Uniform Standards of Professional Appraisal Practice (USPAP)?
Answer: The Appraisal Foundation through the Appraisal Standards Board (ASB)
The Appraisal Standards Board (ASB) of The Appraisal Foundation is responsible for developing and publishing USPAP.
An appraisal review report that contains only a numeric score without any written analysis most likely violates which USPAP requirement?
Answer: The written communication standards under SR 3-2(e)
USPAP SR 3-2(e) requires that a review report contain the reviewer's opinions and conclusions supported by reasons and explanations.
The concept of 'appraiser independence' under the Home Valuation Code of Conduct (HVCC) was later codified permanently by which law?
Answer: The Dodd-Frank Wall Street Reform and Consumer Protection Act
Dodd-Frank permanently codified appraiser independence requirements that were originally established under the temporary HVCC.