Regulatory Framework & Compliance 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 Regulatory Framework & Compliance flashcards as text
Under FHA requirements, which of the following must an appraiser report when observed during a property inspection?
Answer: All readily observable conditions affecting safety, soundness, or security
FHA appraisers must report all readily observable deficiencies affecting the property's safety, soundness, or security as part of the minimum property assessment.
Which regulatory document governs the conduct of FHA appraisers in addition to USPAP?
Answer: HUD Handbook 4000.1 (Single Family Housing Policy Handbook)
HUD Handbook 4000.1 contains FHA-specific appraisal requirements that supplement USPAP and must be followed by all FHA Roster appraisers.
What is the FHA's stance on appraisers using comparable sales from outside the subject's immediate market area?
Answer: It is permitted when necessary with adequate explanation
FHA allows appraisers to use comparables outside the immediate market area when sufficient local data is unavailable, provided the appraiser adequately explains the use.
When must an FHA appraiser photograph the subject property?
Answer: For the front, rear, street scene, and all rooms and deficiencies
HUD requires FHA appraisers to photograph the front, rear, and street scene of the subject, plus all rooms, deficiencies, and comparable sales used in the report.
The Appraiser Independence Requirements (AIR) established under Dodd-Frank primarily prohibit:
Answer: Lenders from coercing, threatening, or bribing appraisers to reach a target value
AIR prohibits lenders and other parties from coercing, threatening, or influencing appraisers to adjust their value conclusions to meet predetermined targets.
An FHA appraisal report that omits required exhibits such as a location map or floor sketch is considered:
Answer: An incomplete report that does not comply with FHA requirements
FHA requires specific exhibits including a location map, building sketch, and photographs; omitting required exhibits renders the report non-compliant with HUD requirements.
What action should an FHA appraiser take upon discovering evidence of an underground storage tank (UST) on the subject property?
Answer: Require remediation and condition the appraisal subject to inspection by a qualified specialist
Underground storage tanks are an environmental hazard; FHA requires the appraiser to flag the condition and require inspection/remediation by a qualified specialist.