Quality Assurance & Improvement 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 Quality Assurance & Improvement flashcards as text
A desk review appraiser who provides their own value opinion in the review report must:
Answer: Comply with USPAP's appraisal development and reporting requirements for that opinion
When a reviewer develops their own value opinion, that opinion is itself an appraisal subject to all USPAP appraisal development and reporting standards.
In a quality assurance context, 'false positives' in automated valuation model (AVM) flags refer to:
Answer: Reports flagged by the AVM as potentially problematic that are actually acceptable upon review
A false positive occurs when an AVM or automated review tool flags a report as deficient, but human review confirms the report is actually acceptable.
When reviewing a commercial income-producing property appraisal, a reviewer should verify that the 'going-concern value' is distinguished from 'real property value' because:
Answer: Business value components included in going-concern value are not mortgageable real property
Going-concern value includes business value elements that are not real property and therefore should not be included in a value basis used for mortgage collateral.
A reviewer assessing geographic competency of the original appraiser should PRIMARILY examine:
Answer: The appraiser's familiarity with neighborhood boundaries, market trends, and local value influences in the subject area
Geographic competency is demonstrated through knowledge of local market conditions, neighborhood boundaries, and area-specific value influences, not physical proximity.
The primary purpose of a pre-funding appraisal review in a mortgage lending context is to:
Answer: Assess whether the appraisal is credible and appropriate for use in the lending decision before the loan closes
Pre-funding review is a quality control measure to confirm the appraisal's credibility and appropriateness before the lender funds the loan.
An appraisal review finds that the original appraiser made a substantial net adjustment of 45% to a comparable sale. Under Fannie Mae guidelines, this MOST likely:
Answer: Requires the appraiser to explain and support why the comparable is still the best available despite the large adjustment
Fannie Mae's large net or gross adjustment thresholds are red flags requiring explanation, not automatic disqualification — the appraiser must justify why the comparable remains appropriate.
A lender's quality improvement initiative reduces its appraisal deficiency rate from 18% to 7% over 12 months. Which metric BEST validates that this improvement reflects genuine quality gains rather than less rigorous review standards?
Answer: Repurchase demand and early payment default rates on loans where appraisals were accepted
Repurchase demands and early payment defaults on accepted loans are downstream indicators that test whether reduced deficiency flags genuinely reflected better appraisals or just looser review criteria.