Documentation & Legal Requirements 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 Documentation & Legal Requirements flashcards as text
What action must an FHA-roster appraiser take if they discover a health or safety hazard during the inspection that the lender's scope of work did not specifically address?
Answer: Report and document the observed hazard in the appraisal report regardless of the defined scope
FHA requires the appraiser to report and document any observed health or safety hazards in the appraisal report, even if they fall outside the originally defined scope of work.
Under FHA Handbook 4000.1, what is the maximum allowable age of an FHA appraisal at the time of loan closing without requiring a recertification of value?
Answer: 180 days
An FHA appraisal is valid for 180 days from the effective date; if closing occurs after 180 days, a recertification of value is required.
When documenting a condominium unit for FHA purposes, which project-level document must the appraiser confirm exists and is current in HUD's system?
Answer: FHA project approval on the HUD-approved condo list (DELRAP or HRAP approval)
The appraiser must confirm the condominium project holds current FHA approval (DELRAP or HRAP) as listed in HUD's approved condo database.
In an FHA appraisal, what is the correct treatment for a detached garage that has been converted to living space without a building permit?
Answer: Exclude the converted space from GLA and flag the unpermitted conversion as a deficiency requiring resolution
Unpermitted conversions must be excluded from GLA and flagged as deficiencies, as FHA requires improvements to comply with local building codes.
Which of the following best describes the FHA requirement for documenting the three approaches to value in a standard appraisal?
Answer: The sales comparison approach is required; cost and income approaches are developed when appropriate and necessary
The sales comparison approach is required for all FHA appraisals; the cost and income approaches are developed when applicable and necessary to support the value conclusion.
What is an appraiser's documentation requirement regarding utilities when inspecting an FHA property where utilities are not turned on at the time of inspection?
Answer: Note the utilities are off, attempt to have them turned on, or schedule a reinspection once utilities are activated
FHA requires utilities to be on during inspection; if off, the appraiser must note this, attempt activation, or schedule a reinspection to verify proper function.
Which of the following situations requires an FHA appraiser to obtain and review a current survey as part of the documentation process?
Answer: When the lender or underwriter specifically requires it, or when encroachments or boundary issues are evident
A survey is required when the lender/underwriter requests it or when the appraiser identifies potential encroachments or boundary disputes that affect value or marketability.