FHA FHA Appraisal Report Writing & Standards 2

Question 1

Under FHA guidelines, what is the appraiser required to do when the contract price for a property exceeds the appraised value?

Accepted Answer

Report the contract price and appraised value separately; the lower value governs LTV

Answer

The appraiser reports both values independently; FHA uses the lesser of the appraised value or contract price to calculate the maximum insurable mortgage amount.

Question 2

What is an 'extraordinary assumption' in an FHA appraisal report?

Accepted Answer

An assumption that, if false, could alter the appraiser's opinions or conclusions

Answer

An extraordinary assumption is a specific assumption that, if found to be false, could alter the appraiser's opinions or conclusions, and must be clearly stated in the report.

Question 3

When must an FHA appraiser perform a 'desk review' or 'field review' of a prior appraisal?

Accepted Answer

When assigned as a review appraiser by the lender or AMC

Answer

An FHA review appraisal is performed when the lender or AMC assigns a review appraiser to evaluate the quality and accuracy of an original appraisal report.

Question 4

What does 'as-is' value mean in the context of an FHA appraisal?

Accepted Answer

The value of the property in its current physical condition on the effective date of the appraisal

Answer

'As-is' value reflects the property's current condition on the effective date of the appraisal, without accounting for any required repairs or proposed improvements.

Question 5

For FHA appraisals, what is the appraiser required to report in the 'neighborhood' section of the URAR?

Accepted Answer

Land use, housing trends, price ranges, and marketing time for the neighborhood

Answer

The neighborhood section of the URAR requires the appraiser to describe land use, housing trends, price ranges, and typical marketing time, providing context for the subject's value.

(FHA) Federal Housing Administration Appraiser Certification Practice Test

(FHA) Federal Housing Administration Appraiser Certification Practice Test

FHA FHA Appraisal Report Writing & Standards 2