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
An FHA appraiser is pressured by a lender's underwriter to reconsider the value after the initial report comes in below the purchase price. How should the appraiser respond?
Answer: Review any new data or arguments presented; only revise if they contain legitimate market evidence
An appraiser may reconsider value only if provided with legitimate new market data or valid reasons; pressure alone is never a justification for revision.
Under USPAP, which of the following is considered an 'extraordinary assumption'?
Answer: An assumption that is contrary to what is known and which, if found to be false, could alter the appraiser's opinions
An extraordinary assumption is one that presumes uncertain information as fact, which if false, could alter the value opinion, and must be disclosed in the report.
What is the primary purpose of the FHA's Appraiser Watch system?
Answer: To monitor appraiser performance and flag those with high rates of default correlations
FHA's Appraiser Watch monitors the performance of appraisers by comparing default and claim rates on loans they appraised relative to peer appraisers.
An appraiser accepts an FHA assignment but later realizes the property is in a market area where they have no experience. Under the Competency Rule, the appraiser must:
Answer: Disclose the lack of competency, take steps to gain competency, and describe those steps in the report
USPAP's Competency Rule requires disclosure of a competency lack, action to acquire it, and description of those steps in the appraisal report.
Which statement best describes an 'intended user' in FHA appraisal practice?
Answer: The client and any other party identified by the appraiser as a user of the report as of the effective date
Intended users are the client and any other parties the appraiser identifies as users of the report at the time of the assignment.
An appraiser includes a statement in the appraisal report that the analysis was made 'in conformance with USPAP' when they actually omitted required analyses. This violates which USPAP rule?
Answer: The Ethics Rule's Conduct section, which prohibits false or misleading statements
Making a false compliance statement violates the Conduct section of the Ethics Rule, which prohibits communicating in a misleading manner.
An FHA appraiser is asked to perform a 'desk review' of another appraiser's report. Under USPAP, this constitutes:
Answer: An appraisal review governed by USPAP Standard 3
Reviewing another appraiser's work product is an appraisal review governed by USPAP Standard 3, regardless of whether it includes a property inspection.