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

Fannie Mae Form 1004, the Uniform Residential Appraisal Report, is the standard form for single-family detached residential properties.

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

GSE guidelines require that condominium comparables be drawn primarily from within the same project or truly competing projects to reflect the correct market segment.

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

FHA requires appraisers to identify and report health and safety conditions because FHA-insured loans must meet Minimum Property Requirements (MPR) protecting occupants.

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

'As-is' value reflects the property's market value in its present condition on the effective date, without assuming any future improvements or changes.

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

A reconsideration of value request is permissible when it provides legitimate market data; the appraiser must objectively evaluate the information and document their response.

(CAR) Certified Appraisal Reviewer Practice Test

(CAR) Certified Appraisal Reviewer Practice Test

CAR Financing & Lending Standards in Appraisal Review 2