CAR Industry Regulations & Compliance 2

Question 1

Under USPAP, which departure provision allows an appraiser to omit normally required steps when the client agrees in writing?

Accepted Answer

Departure rule (pre-2006)

Answer

The Departure Rule (eliminated in the 2006 USPAP edition) allowed appraisers to depart from specific requirements if certain conditions were met and the client agreed.

Question 2

The Dodd-Frank Wall Street Reform Act placed appraisal management companies under the oversight of which federal agencies?

Accepted Answer

The federal banking regulators through the ASC

Answer

Dodd-Frank strengthened AMC oversight by requiring federal banking regulators, coordinated through the ASC, to establish minimum standards for AMC registration.

Question 3

A reviewer identifies that an appraisal used a sales comparison approach but the appraiser selected only foreclosure sales as comparables. Which USPAP standard is most directly violated?

Accepted Answer

Standard 1-4(a) — market data analysis

Answer

Standard 1-4(a) requires the appraiser to use comparable sales that are sufficiently similar; systematically selecting distressed sales without analysis violates this requirement.

Question 4

Under the Equal Credit Opportunity Act (ECOA), lenders must provide applicants a copy of the appraisal within how many days of completing the appraisal?

Accepted Answer

Promptly upon completion and no later than 3 business days before consummation

Answer

ECOA (Regulation B) requires lenders to provide a copy promptly upon completion, and no later than 3 business days before loan consummation.

Question 5

Which entity publishes the Uniform Standards of Professional Appraisal Practice (USPAP)?

Accepted Answer

The Appraisal Foundation through the Appraisal Standards Board (ASB)

Answer

The Appraisal Standards Board (ASB) of The Appraisal Foundation is responsible for developing and publishing USPAP.

(CAR) Certified Appraisal Reviewer Practice Test

(CAR) Certified Appraisal Reviewer Practice Test

CAR Industry Regulations & Compliance 2