FHA Client Advisory & Consultation 2

Question 1

An FHA lender asks an appraiser to reconsider value after the appraisal came in below the contract price. What is the appropriate appraiser response?

Accepted Answer

Review any additional comparable sales or data provided and revise only if supported by evidence

Answer

An appraiser may reconsider value only when presented with new, credible data that supports a revision — not simply due to client pressure.

Question 2

When consulting with a client about scope of work for an FHA appraisal, the appraiser determines the assignment requires extraordinary assumptions. What must the appraiser do?

Accepted Answer

Disclose the extraordinary assumptions and their potential impact on assignment results to the client

Answer

USPAP requires appraisers to disclose extraordinary assumptions and their potential impact on assignment results in the appraisal report and when communicating with clients.

Question 3

A client asks an FHA appraiser to omit a known environmental hazard from the appraisal report to speed up the loan process. How should the appraiser respond?

Accepted Answer

Decline to omit the hazard and report it as required by FHA guidelines

Answer

FHA appraisers must report all observed adverse conditions including environmental hazards; omitting them at a client's request violates both USPAP and FHA requirements.

Question 4

A buyer's agent contacts the FHA appraiser directly requesting a copy of the completed appraisal report. What should the appraiser do?

Accepted Answer

Decline and explain that the report is the property of the lender/client

Answer

The appraisal report belongs to the client (lender) and may only be released to third parties with the client's authorization.

Question 5

During an FHA appraisal consultation, a lender asks the appraiser to use a specific comparable sale that the appraiser believes is not arm's-length. What is the correct course of action?

Accepted Answer

Analyze the sale, note its non-arm's-length nature, and adjust or exclude it with explanation

Answer

The appraiser must analyze the suggested comparable objectively, disclose any non-arm's-length characteristics, and explain why it was adjusted or excluded.

(FHA) Federal Housing Administration Appraiser Certification Practice Test

(FHA) Federal Housing Administration Appraiser Certification Practice Test

FHA Client Advisory & Consultation 2