CAR Quality Assurance & Improvement 3

Question 1

A reviewer finds that a commercial appraisal's income approach used a cap rate derived from a single comparable sale. The MOST appropriate reviewer action is to:

Accepted Answer

Flag it as a potential deficiency due to insufficient market evidence for the cap rate

Answer

A cap rate derived from one transaction lacks sufficient market evidence and should be flagged as a potential deficiency requiring further support.

Question 2

Under AIR (Appraiser Independence Requirements), which of the following actions by a loan production staff member would constitute a violation?

Accepted Answer

Informing the appraiser of the loan amount needed to approve the transaction

Answer

Informing the appraiser of the loan amount needed pressures the appraiser to meet a predetermined value, violating appraiser independence.

Question 3

When a review appraiser disagrees with the original appraiser's value conclusion but cannot identify a specific error in methodology, the reviewer should:

Accepted Answer

State the disagreement and provide the reviewer's own analysis and market evidence supporting a different value

Answer

The reviewer must support any disagreement with the original conclusion by providing market evidence and analysis, not simply assert a different opinion.

Question 4

A 'second appraisal' ordered by a lender is MOST appropriate when:

Accepted Answer

There is a complex or high-value property, or an inconsistency in the original report warrants additional due diligence

Answer

Second appraisals are most appropriate for complex or high-value properties, or when due diligence reveals inconsistencies needing independent verification.

Question 5

In residential mortgage lending, an Appraisal Management Company (AMC) must ensure that fee appraisers on its panel are:

Accepted Answer

Licensed or certified in the state where the property is located

Answer

AMCs are required to use only appraisers who hold appropriate state licensure or certification in the jurisdiction where the subject property is located.

(CAR) Certified Appraisal Reviewer Practice Test

(CAR) Certified Appraisal Reviewer Practice Test

CAR Quality Assurance & Improvement 3