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.
Read the first 7 Industry Regulations & Compliance flashcards as text
The AQB (Appraisal Qualifications Board) establishes minimum education and experience criteria for appraiser credentialing. Which body then decides whether to adopt these criteria?
Answer: Each individual state appraisal regulatory agency
While the AQB sets minimum criteria (Real Property Appraiser Qualification Criteria), each state's appraiser regulatory agency adopts and enforces them.
Under USPAP, a 'restricted appraisal report' may only be used by which party without additional disclosure?
Answer: The intended user named in the report
A restricted appraisal report is prepared for a single intended user (typically the client) and may not be relied upon by any other party without conversion to a more detailed report.
When reviewing an appraisal for FHA-insured mortgage purposes, the reviewer must ensure the appraiser followed which specific guidelines in addition to USPAP?
Answer: HUD Handbook 4000.1 (FHA Single Family Housing Policy Handbook)
FHA appraisals must comply with HUD Handbook 4000.1, which contains property eligibility and appraisal protocol requirements that supplement USPAP.
A reviewer discovers that the original appraiser did not disclose a prior service on the subject property within the three-year look-back period required by USPAP. This most directly violates which USPAP rule?
Answer: Standard 1-2(f) — prior services disclosure
USPAP Standards Rule 1-2(f) and the corresponding certification requirement mandate disclosure of prior services involving the subject property within the past three years.
Appraisal Management Companies (AMCs) operating across state lines must register in each state where they operate. Which federal rule established this requirement for AMCs serving federally regulated lenders?
Answer: The 2015 AMC Rule jointly issued by federal banking regulators and the ASC
The 2015 AMC Rule (jointly issued by OCC, Fed, FDIC, NCUA, CFPB, and FHFA with the ASC) established minimum standards for state AMC registration programs.
Under the Fair Housing Act, an appraiser who assigns a lower value to a property because of the racial composition of the surrounding neighborhood is engaging in which prohibited practice?
Answer: Appraisal bias / discriminatory appraisal
Using neighborhood racial composition as a valuation factor constitutes appraisal bias, which is prohibited under the Fair Housing Act as a form of race-based discrimination.
The Interagency Appraisal and Evaluation Guidelines (2010) permit federally regulated institutions to use an 'evaluation' instead of an appraisal for transactions below certain thresholds. An evaluation must:
Answer: Provide a market value estimate consistent with the institution's appraisal program but without full USPAP compliance
The 2010 Guidelines allow evaluations for exempt transactions; they must provide a credible estimate of market value but do not require USPAP compliance or a licensed appraiser.