Practice Test Geeks(CAR) Certified Appraisal Reviewer Practice Test
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Industry Regulations & Compliance 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.

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  1. Under FIRREA, federally regulated financial institutions are required to use state-certified or state-licensed appraisers for transactions above what threshold (as of the most recent OCC/FDIC rules)?

    Answer: $500,000

    The federal banking regulators raised the residential appraisal threshold to $400,000 in 2019, but the commercial real estate appraisal threshold is $500,000.

  2. A lender's staff reviewer pressures a fee appraiser to revise value upward to make a loan work. This conduct most directly violates which regulation?

    Answer: Dodd-Frank appraiser independence provisions (15 U.S.C. § 1639e)

    Dodd-Frank 15 U.S.C. § 1639e explicitly prohibits coercion, bribery, or intimidation of appraisers to influence valuation results.

  3. The Appraisal Subcommittee (ASC) was created under which legislation?

    Answer: FIRREA Title XI

    FIRREA Title XI (1989) established the Appraisal Subcommittee to oversee state appraiser credentialing programs and the Appraisal Foundation.

  4. When performing an appraisal review under USPAP Standard 3, the reviewer must, at minimum, develop which of the following?

    Answer: An opinion about the quality of the work under review

    Under SR 3-1, the reviewer must develop an opinion about the quality of the work under review and, if required, an opinion of value.

  5. Which federal agency has primary enforcement authority over non-bank mortgage lenders for appraiser independence violations?

    Answer: The Consumer Financial Protection Bureau (CFPB)

    The CFPB has primary supervisory and enforcement authority over non-bank mortgage lenders for Dodd-Frank consumer protection provisions including appraiser independence.

  6. In a desk review, the reviewer evaluates the appraisal report without performing a property inspection. Under USPAP, this is acceptable when the reviewer does which of the following?

    Answer: Clearly identifies the scope of work, including the lack of inspection, in the review report

    USPAP requires the reviewer to identify the scope of work actually performed; disclosing that no inspection occurred satisfies this requirement.

  7. The Uniform Appraisal Dataset (UAD) standardized appraisal reporting forms were developed through collaboration between which two entities?

    Answer: Fannie Mae and Freddie Mac

    Fannie Mae and Freddie Mac jointly developed the UAD to standardize key fields on appraisal report forms used for loans sold to the GSEs.