CAR Financing & Lending Standards in Appraisal Review 3

Question 1

A 'field review' in the appraisal lending context involves:

Accepted Answer

An exterior drive-by or inspection of the subject property and selected comparables to verify reported data

Answer

Reviewing appraisals of farm and agricultural properties only

Answer

A full interior and exterior inspection equivalent to a new appraisal

Answer

Using an automated valuation model to check the original conclusion

Question 2

Under USPAP Standard 3, what is the reviewer's required scope when reviewing a real property appraisal?

Accepted Answer

The reviewer must develop an opinion about the quality of the work under review

Answer

The reviewer must always provide an independent value conclusion

Answer

The reviewer must only assess USPAP compliance, not the quality of the analysis

Answer

The reviewer must limit their scope to the sales comparison approach

Question 3

The Interagency Appraisal and Evaluation Guidelines state that appraisals for federally related transactions must be based on:

Accepted Answer

Market value as defined in the regulatory guidelines

Answer

The contract price of the subject property

Answer

The property's assessed value for local tax purposes

Answer

Replacement cost value of the improvements only

Question 4

When an appraisal review identifies a significant error in the original appraisal, the reviewer's primary obligation is to:

Accepted Answer

Document the finding and communicate it to the client in the review report

Answer

Correct the error directly and reissue the appraisal in their own name

Answer

Immediately report the original appraiser to the state appraisal board

Answer

Ask the original appraiser verbally to revise the report without written documentation

Question 5

Which of the following actions violates RESPA's prohibition on kickbacks in real estate settlement services?

Accepted Answer

Paying referral fees to a real estate agent for sending appraisal business

Answer

Ordering an appraisal before loan underwriting approval is completed

Answer

Using a state-certified appraiser for a standard residential appraisal

Answer

Reviewing an appraisal report for guideline compliance

Question 6

The Uniform Collateral Data Portal (UCDP) is used primarily to:

Accepted Answer

Electronically submit appraisal data to Fannie Mae and Freddie Mac for collateral risk assessment

Answer

Track state appraiser license renewals and disciplinary actions

Answer

Generate automated valuation models for property collateral

Answer

Register appraisal management companies in all fifty states

Question 7

When reviewing a Form 2055 (Exterior-Only Inspection) appraisal, the reviewer should recognize that this report type:

Accepted Answer

Relies on an exterior-only observation and public record data rather than an interior inspection

Answer

Includes a complete interior and exterior property inspection by the appraiser

Answer

Is used exclusively for newly constructed properties before certificate of occupancy

Answer

Requires three interior photographs as supporting documentation