Client Advisory & Consultation Flashcards
7 cards from real FHA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Client Advisory & Consultation flashcards as text
An FHA lender asks an appraiser to reconsider value after the appraisal came in below the contract price. What is the appropriate appraiser response?
Answer: Review any additional comparable sales or data provided and revise only if supported by evidence
An appraiser may reconsider value only when presented with new, credible data that supports a revision — not simply due to client pressure.
When consulting with a client about scope of work for an FHA appraisal, the appraiser determines the assignment requires extraordinary assumptions. What must the appraiser do?
Answer: Disclose the extraordinary assumptions and their potential impact on assignment results to the client
USPAP requires appraisers to disclose extraordinary assumptions and their potential impact on assignment results in the appraisal report and when communicating with clients.
A client asks an FHA appraiser to omit a known environmental hazard from the appraisal report to speed up the loan process. How should the appraiser respond?
Answer: Decline to omit the hazard and report it as required by FHA guidelines
FHA appraisers must report all observed adverse conditions including environmental hazards; omitting them at a client's request violates both USPAP and FHA requirements.
A buyer's agent contacts the FHA appraiser directly requesting a copy of the completed appraisal report. What should the appraiser do?
Answer: Decline and explain that the report is the property of the lender/client
The appraisal report belongs to the client (lender) and may only be released to third parties with the client's authorization.
During an FHA appraisal consultation, a lender asks the appraiser to use a specific comparable sale that the appraiser believes is not arm's-length. What is the correct course of action?
Answer: Analyze the sale, note its non-arm's-length nature, and adjust or exclude it with explanation
The appraiser must analyze the suggested comparable objectively, disclose any non-arm's-length characteristics, and explain why it was adjusted or excluded.
An FHA appraiser is asked by a client to provide a verbal update on the likely value range before the written report is complete. What applies under USPAP?
Answer: The appraiser may provide a verbal report but must later prepare a written report when required by the assignment
USPAP permits oral appraisal reports but requires the appraiser to maintain a work file; FHA typically requires a written report, so verbal updates should be preliminary only.
A lender instructs the FHA appraiser to assume the property is in average condition regardless of actual observations. The appraiser disagrees with this instruction. What should occur?
Answer: Use the hypothetical condition only if it is clearly labeled and disclosed in the report
An assumption contrary to fact constitutes a hypothetical condition, which must be explicitly labeled, disclosed, and explained in the appraisal report.