Ethical Standards & Professional Conduct 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 Ethical Standards & Professional Conduct flashcards as text
Which USPAP rule specifically addresses the appraiser's obligation to keep client information confidential?
Answer: The Confidentiality section of the Ethics Rule
The Confidentiality section of USPAP's Ethics Rule prohibits appraisers from disclosing confidential information or assignment results without client consent.
An FHA appraiser completes an appraisal and later receives a request from the seller's attorney for a copy of the report. What should the appraiser do?
Answer: Decline unless the client authorizes disclosure
Under USPAP's Confidentiality section, the appraiser may only disclose the report to the client or parties the client authorizes.
What does the USPAP Record Keeping Rule require appraisers to include in their workfile?
Answer: All data, information, and documentation necessary to support the appraiser's opinions and conclusions
The Record Keeping Rule requires workfiles to contain all data and documentation necessary to support the appraiser's analyses, opinions, and conclusions.
Under HUD Mortgagee Letter policies, an FHA appraiser who knowingly provides a fraudulent appraisal may face which consequence?
Answer: Loss of FHA roster eligibility and potential criminal prosecution
Knowingly providing a fraudulent FHA appraisal can result in removal from the FHA appraiser roster, civil money penalties, and referral for criminal prosecution.
An appraiser is offered a bonus by the lender for completing FHA appraisals within 24 hours. This arrangement is:
Answer: Prohibited because contingent compensation based on assignment completion compromises independence
Contingent compensation tied to the completion or outcome of an assignment is prohibited under USPAP's Management section and FHA independence requirements.
Which of the following best describes 'scope of work' as it relates to FHA appraisal ethics?
Answer: The type and extent of research and analysis needed to produce credible results
Scope of work refers to the type and extent of research and analysis required to produce credible assignment results under USPAP's Scope of Work Rule.
When must an FHA appraiser disclose a prior service performed on the same property in the current appraisal report?
Answer: Always, within the past 3 years, regardless of the nature of the service
USPAP requires appraisers to disclose any prior services on the same property within the three years preceding the current assignment.