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
Under FHA guidelines, what is the appraiser's responsibility when a property is in a designated noise zone above 75 decibels (e.g., near an airport)?
Answer: The appraiser must note the noise impact and the property typically requires sound attenuation measures to be FHA-eligible
Properties in high noise zones above 75 dB require sound attenuation to meet FHA Minimum Property Requirements, and the appraiser must identify this condition.
When performing an FHA appraisal on a property with an underground storage tank (UST) that is no longer in use, what should the appraiser do?
Answer: Flag it as a potential environmental hazard and recommend an environmental inspection
Abandoned USTs are a recognized environmental risk due to potential leaks; FHA appraisers must flag them and recommend an environmental inspection.
How does FHA treat a property where the appraiser observes signs of active pest infestation during the inspection?
Answer: The appraiser must require a pest inspection by a licensed inspector as a condition of the appraisal
FHA requires a wood-destroying pest inspection when the appraiser observes evidence of active infestation, making treatment a required repair before loan closing.
A property's garage has been converted to a bedroom without permits. How should an FHA appraiser handle the unpermitted conversion?
Answer: Note it as an unpermitted conversion, exclude it from GLA, and flag potential safety and legal non-conformance issues
Unpermitted conversions must be excluded from GLA and disclosed as a potential safety and legal issue; they may require legalization or removal to satisfy FHA requirements.
What risk does an FHA appraiser assess when a property relies on a shared well agreement with neighboring properties?
Answer: Legal enforceability of the shared well agreement and adequacy of supply for all parties
FHA requires that shared well agreements be legally recorded, enforceable, and ensure adequate water supply, protecting future occupants from losing water access.
When an FHA appraiser identifies a property where the heating system relies solely on wood-burning stoves, what is the required determination?
Answer: The appraiser must determine if the system can adequately heat all living areas; supplemental conventional heat may be required in colder climates
FHA requires that the heating system maintain a minimum of 50°F in all living areas; in colder climates, wood-burning stoves alone may be insufficient and supplemental heat required.
Which appraisal technique best helps an FHA appraiser quantify market risk associated with a declining neighborhood?
Answer: Paired sales analysis to isolate the value impact of neighborhood decline on property prices
Paired sales analysis isolates the specific value impact of neighborhood-related factors by comparing otherwise similar properties in different market conditions.