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 appraiser is asked by a client to certify that the property is located outside a FEMA Special Flood Hazard Area without reviewing a flood map. What should the appraiser do?
Answer: Review the applicable FEMA flood map or NFIP determination and accurately state the property's flood zone status
FHA appraisers are required to identify and report the flood zone status by referencing FEMA maps; certifying without verification would be a misrepresentation.
After submitting a final FHA appraisal report, the appraiser discovers a calculation error that affects the final value opinion. What is the correct action?
Answer: Issue a corrected appraisal report with a new certification and notify the client of the correction
Discovered errors must be corrected by issuing a revised report with a new certification; the client must be notified regardless of the error's magnitude.
A client asks the FHA appraiser to include language in the report that could be interpreted as a guarantee of value. What is the appropriate response?
Answer: Decline, explaining that appraisals are opinions of value and cannot be represented as guarantees
Appraisals represent professional opinions of value, not guarantees; including guarantee language would misrepresent the nature of the appraisal.
During an FHA consultation, a lender requests the appraiser evaluate only one approach to value to reduce report length. How should the appraiser respond?
Answer: Evaluate all applicable approaches, explaining why each was used or excluded, consistent with USPAP and FHA requirements
The appraiser must apply all applicable valuation approaches and provide credible results; omitting an applicable approach without explanation violates USPAP.
An FHA client requests that the appraiser sign a client-drafted certification that contains statements the appraiser believes are inaccurate. What must the appraiser do?
Answer: Refuse to sign false or misleading certification statements
Appraisers are personally responsible for all signed certifications; signing one containing known inaccuracies is an ethical violation.
An FHA lender client asks the appraiser to change the effective date of the appraisal to a date three weeks earlier to meet loan lock expiration requirements. What should the appraiser do?
Answer: Decline because the effective date reflects actual conditions observed on the inspection date
The effective date represents when the appraiser's value opinion applies and must reflect the actual inspection date; retroactively altering it is fraudulent.
A client asks an FHA appraiser to consult on whether a proposed property improvement would increase market value before making the investment. What type of service is this?
Answer: An appraisal consulting service under USPAP Standard 4 and 5
Advisory opinions on whether improvements will add value fall under USPAP appraisal consulting (Standards 4 and 5), not a standard appraisal assignment.