Risk Assessment & Mitigation 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 Risk Assessment & Mitigation flashcards as text
When appraising a property in a Special Flood Hazard Area (SFHA), what does FHA require the appraiser to note?
Answer: The flood zone designation and whether flood insurance is required
FHA appraisers must note SFHA designation and flag the flood insurance requirement, which lenders must verify is in place at closing.
A property's site has a slope exceeding 15% toward the foundation. How should an FHA appraiser treat this condition?
Answer: Note it as an adverse site condition that may require repair prior to FHA financing
Excessive slope toward a foundation is an adverse condition that must be reported and typically corrected to prevent water intrusion and structural risk.
Which environmental hazard requires an FHA appraiser to recommend an inspection when the home was built before 1978?
Answer: Lead-based paint
HUD requires that FHA appraisers note the potential for lead-based paint in homes built before 1978 and recommend testing when defective paint surfaces are observed.
An FHA appraisal subject property has a cracked and settling retaining wall along the rear property line. What is the appraiser's appropriate action?
Answer: Call it out as a safety hazard requiring repair before FHA loan closing
A failing retaining wall poses a safety risk and must be flagged as a required repair; FHA MPRs extend to site conditions that affect safety.
When an FHA appraiser identifies a property in a designated Coastal Barrier Resources System (CBRS) zone, what is the primary concern?
Answer: Federal flood insurance and most federal financial assistance are unavailable for the property
Properties in CBRS zones are ineligible for federal flood insurance under the Coastal Barrier Resources Act, which significantly limits FHA financing eligibility.
A property is adjacent to a high-voltage electrical transmission line easement. How must the FHA appraiser address this?
Answer: Note the easement and assess whether it adversely affects the property's safety, utility, or marketability
Appraisers must identify easements that may create safety hazards or negatively impact value and marketability, reporting them as adverse conditions if warranted.
Which condition would most likely cause an FHA appraiser to flag a property as 'subject to repair' rather than appraising it 'as-is'?
Answer: An inoperable HVAC system during a summer inspection
An inoperable HVAC system violates FHA's requirement that mechanical systems be functional, making the property subject to repair before loan closing.