CAR Industry Regulations & Compliance 3

Question 1

Under FIRREA, federally regulated financial institutions are required to use state-certified or state-licensed appraisers for transactions above what threshold (as of the most recent OCC/FDIC rules)?

Accepted Answer

$500,000

Answer

The federal banking regulators raised the residential appraisal threshold to $400,000 in 2019, but the commercial real estate appraisal threshold is $500,000.

Question 2

A lender's staff reviewer pressures a fee appraiser to revise value upward to make a loan work. This conduct most directly violates which regulation?

Accepted Answer

Dodd-Frank appraiser independence provisions (15 U.S.C. § 1639e)

Answer

Dodd-Frank 15 U.S.C. § 1639e explicitly prohibits coercion, bribery, or intimidation of appraisers to influence valuation results.

Question 3

The Appraisal Subcommittee (ASC) was created under which legislation?

Accepted Answer

FIRREA Title XI

Answer

FIRREA Title XI (1989) established the Appraisal Subcommittee to oversee state appraiser credentialing programs and the Appraisal Foundation.

Question 4

When performing an appraisal review under USPAP Standard 3, the reviewer must, at minimum, develop which of the following?

Accepted Answer

An opinion about the quality of the work under review

Answer

Under SR 3-1, the reviewer must develop an opinion about the quality of the work under review and, if required, an opinion of value.

Question 5

Which federal agency has primary enforcement authority over non-bank mortgage lenders for appraiser independence violations?

Accepted Answer

The Consumer Financial Protection Bureau (CFPB)

Answer

The CFPB has primary supervisory and enforcement authority over non-bank mortgage lenders for Dodd-Frank consumer protection provisions including appraiser independence.

(CAR) Certified Appraisal Reviewer Practice Test

(CAR) Certified Appraisal Reviewer Practice Test

CAR Industry Regulations & Compliance 3