CGA Regulatory & Fair Housing Compliance 2

Question 1

Under FIRREA, which federal agency has primary oversight authority over appraisers who perform appraisals for federally related transactions?

Accepted Answer

The Appraisal Subcommittee (ASC)

Answer

The Appraisal Subcommittee (ASC) monitors state appraiser regulatory programs and the Appraisal Foundation under FIRREA.

Question 2

A lender asks an appraiser to 'hit a value' to make a loan work. The appraiser's ethical obligation under USPAP is to:

Accepted Answer

Decline the assignment and maintain independence

Answer

USPAP's Ethics Rule requires appraisers to protect their independence and decline assignments where predetermined conclusions are required.

Question 3

Which provision of the Fair Housing Act specifically prohibits steering minority buyers away from certain neighborhoods?

Accepted Answer

Section 804(b)

Answer

Section 804(b) of the Fair Housing Act prohibits discrimination in the terms, conditions, or privileges of the sale or rental of a dwelling.

Question 4

An appraiser using the sales comparison approach notes that comparable sales in a neighborhood are predominantly to one racial group. The appraiser should:

Accepted Answer

Use the sales as comparables without reference to racial composition

Answer

Appraisers must use all relevant market sales as comparables and may not consider racial composition as a value factor.

Question 5

Under Dodd-Frank, the Appraisal Independence Requirements (AIR) prohibit which party from selecting appraisers for mortgage transactions?

Accepted Answer

Loan originators and brokers

Answer

AIR under Dodd-Frank prohibits loan originators and brokers from selecting appraisers to prevent undue influence on valuation.

(CGA) Certified General Appraiser Practice Test

(CGA) Certified General Appraiser Practice Test

CGA Regulatory & Fair Housing Compliance 2