Practice Test Geeks(FHA) Federal Housing Administration Appraiser Certification Practice Test
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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

  1. An FHA lender client wants the appraiser to bypass the normal URAR form and submit only a desktop appraisal for a standard purchase transaction. What governs this decision?

    Answer: FHA guidelines specify which report forms are acceptable for each transaction type, and the appraiser must comply

    FHA specifies required report forms (typically FNMA 1004/URAR for single-family) and the appraiser must use the form that FHA mandates for the transaction type.

  2. When advising a client on FHA appraisal portability, which statement is accurate?

    Answer: An FHA appraisal is assigned to the case number and can be transferred to a new lender if the borrower switches lenders before closing

    FHA appraisals are tied to the case number and may be transferred to a new lender when a borrower switches lenders prior to closing under FHA portability rules.

  3. An FHA client asks the appraiser to explain the difference between a subject-to appraisal and an as-is appraisal during a pre-engagement consultation. Which statement is correct?

    Answer: As-is reflects current property condition; subject-to reflects a hypothetical completion of specified repairs or conditions

    An as-is appraisal reflects the property's current condition, while a subject-to appraisal is conditioned on the completion of specific repairs, alterations, or construction.

  4. A client asks an FHA appraiser to advise on whether the subject property qualifies for the FHA 203(k) rehabilitation loan program. What is the appraiser's appropriate role?

    Answer: Provide the after-rehabilitation value opinion as requested while noting that eligibility determination rests with the lender and HUD

    The appraiser's role in a 203(k) assignment is to provide the after-rehabilitation value opinion; the lender and HUD determine program eligibility.

  5. During client consultation, a lender asks the FHA appraiser to sign a confidentiality agreement preventing disclosure of the appraisal to the borrower. How should the appraiser respond?

    Answer: Decline, as federal law (ECOA/Regulation B) entitles mortgage loan applicants to a copy of the appraisal

    ECOA and Regulation B require lenders to provide mortgage applicants with a copy of the appraisal; a confidentiality agreement restricting borrower access would violate federal law.

  6. An FHA appraiser who is also a real estate broker is asked to appraise a property for which they previously listed and sold. What is the primary concern?

    Answer: Prior involvement as the listing agent creates a presumption of impaired objectivity requiring disclosure and potential withdrawal

    Prior involvement in the property as an agent creates a significant conflict of interest that must be disclosed; the appraiser should consider whether objectivity is impaired.

  7. A client disputes the appraiser's market condition adjustments, claiming they are excessive. The appraiser's adjustments are well-supported by paired sales analysis. What is the correct response?

    Answer: Provide the supporting paired sales analysis data to the client and maintain the adjustments if the evidence is sound

    When adjustments are supported by credible evidence, the appraiser must maintain them and share the supporting analysis — yielding to pressure without new evidence violates USPAP.