CAR Financing & Lending Standards in Appraisal Review 2

Question 1

Fannie Mae's Selling Guide designates which form as the standard report for a single-family residential appraisal of a detached property?

Accepted Answer

Form 1004 (Uniform Residential Appraisal Report)

Answer

Form 1025 (Small Residential Income Property Appraisal Report)

Answer

Form 1073 (Individual Condominium Unit Appraisal Report)

Answer

Form 2055 (Exterior-Only Inspection Residential Appraisal Report)

Question 2

When reviewing a condominium appraisal for lending purposes, which comparable selection approach best satisfies GSE guidelines?

Accepted Answer

Comparables should primarily come from within the same project or competing condominium projects

Answer

All comparables must be from the same floor of the building

Answer

All comparables must be sold within six months regardless of location

Answer

Comparables must be within a one-mile radius of the subject

Question 3

Under FHA appraisal requirements, the appraiser must specifically identify and report:

Accepted Answer

Health and safety issues that affect the property's habitability and marketability

Answer

Only major structural defects that exceed $5,000 in repair costs

Answer

Cosmetic deficiencies that affect curb appeal

Answer

Only items related to the foundation and roof

Question 4

The 'as-is' value in a lending appraisal refers to:

Accepted Answer

The property's market value in its current condition as of the effective date of the appraisal

Answer

The projected value after all planned renovations are complete

Answer

The assessed value established by the local tax authority

Answer

The replacement cost value of the improvements

Question 5

A lender submits additional comparable sales to an appraiser and requests reconsideration of value. Under AIR and USPAP, the appraiser should:

Accepted Answer

Objectively evaluate the new comparables and respond with appropriate analysis

Answer

Automatically revise the value upward to support the loan amount

Answer

Reject the request as it constitutes improper influence under AIR

Answer

Forward the request to the state appraisal board without responding

Question 6

The primary purpose of an appraisal review in the mortgage lending process is to:

Accepted Answer

Verify that the appraisal supports the loan amount and complies with applicable guidelines and regulations

Answer

Confirm the property meets flood zone requirements

Answer

Establish the tax assessed value for the property

Answer

Replace the original appraisal with the reviewer's independent opinion

Question 7

VA appraisals for home loans are conducted by fee appraisers who are assigned through:

Accepted Answer

A VA fee panel rotation system that assigns appraisers by geography

Answer

Direct selection by the borrower from a VA-approved list

Answer

Direct selection by the originating lender

Answer

Employment directly within VA regional offices