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

A field review includes a physical drive-by or exterior observation of the subject property and comparables to verify that the descriptions and condition ratings in the appraisal are accurate.

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

USPAP Standard 3 requires the reviewer to develop an opinion about the quality—including completeness, adequacy, relevance, and reasonableness—of the work under review.

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

Federal regulations require that appraisals for federally related transactions reflect market value as defined in the Interagency Guidelines, not contract price or assessed value.

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

The reviewer's obligation under USPAP Standard 3 is to document findings and communicate them to the client; reporting to the board may be appropriate but is secondary to the review report.

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

RESPA prohibits giving or accepting kickbacks, referral fees, or unearned fees in connection with real estate settlement services, including appraisal referrals.

(CAR) Certified Appraisal Reviewer Practice Test

(CAR) Certified Appraisal Reviewer Practice Test

CAR Financing & Lending Standards in Appraisal Review 3