FHA Documentation & Legal Requirements 2

Question 1

When an FHA appraisal report references a prior sale of the subject property, which time frame requires the appraiser to analyze and reconcile any significant price change?

Accepted Answer

Within the past 12 months

Answer

FHA requires the appraiser to analyze and reconcile any significant price change for sales of the subject property within the past 12 months.

Question 2

What must an FHA appraiser do if the MLS data used as a data source contains an error that affects the appraisal conclusion?

Accepted Answer

Note the discrepancy, verify with an alternate source, and document the resolution in the report

Answer

The appraiser must note data discrepancies, verify through an alternate source, and document how the conflict was resolved within the appraisal report.

Question 3

Under FHA guidelines, which document formally transfers the FHA case number assignment and appraisal to a new lender when a borrower switches lenders?

Accepted Answer

Case Transfer Request via FHA Connection

Answer

A case transfer is processed through FHA Connection, allowing the appraisal and case number to follow the borrower to the new lender.

Question 4

Which section of the Uniform Residential Appraisal Report (URAR/Fannie Mae Form 1004) is primarily used by FHA appraisers to document required repairs and property condition?

Accepted Answer

Comments on the Condition of the Property section within Improvements

Answer

Required repairs and condition issues are documented in the Comments on the Condition of the Property section of the Improvements portion of the URAR.

Question 5

For FHA appraisals, what is the required protocol when the appraiser cannot gain interior access to a comparable sale used in the report?

Accepted Answer

Use the comparable with a disclosure that only exterior inspection was possible and verify data from reliable sources

Answer

FHA allows exterior-only inspection of comparables provided the appraiser discloses the limitation and verifies data through reliable sources such as MLS or public records.

(FHA) Federal Housing Administration Appraiser Certification Practice Test

(FHA) Federal Housing Administration Appraiser Certification Practice Test

FHA Documentation & Legal Requirements 2