FHA Ethical Standards & Professional Conduct 2

Question 1

Under USPAP's Ethics Rule, which of the following actions constitutes a violation of the Conduct section?

Accepted Answer

Accepting an assignment with a predetermined value conclusion

Answer

Accepting an assignment contingent on a predetermined value conclusion violates the Conduct section of USPAP's Ethics Rule.

Question 2

An FHA appraiser discovers mid-assignment that the lender's loan officer is the property owner's brother. What is the most appropriate action?

Accepted Answer

Disclose the relationship and withdraw if independence is compromised

Answer

When a conflict of interest is discovered, the appraiser must disclose it and withdraw if it impairs independence, per USPAP Ethics Rule.

Question 3

The USPAP Management section of the Ethics Rule prohibits appraisers from doing which of the following?

Accepted Answer

Paying referral fees to mortgage brokers for appraisal assignments

Answer

The Management section prohibits paying referral fees or other compensation to secure appraisal assignments, as this impairs independence.

Question 4

Under HUD guidelines, how long must an FHA appraiser retain the appraisal workfile?

Accepted Answer

3 years from the date of the report or 3 years after final disposition of any legal proceeding, whichever is later

Answer

USPAP requires workfile retention for at least five years from the date of the report or two years after final disposition of any legal proceeding, but HUD/FHA imposes a minimum of three years.

Question 5

An appraiser is asked by a borrower to 'make the value work' for their refinance. The appraiser should:

Accepted Answer

Decline the request and maintain an independent value opinion

Answer

Requests to predetermine value conclusions must be declined to preserve appraiser independence under USPAP and FHA requirements.

(FHA) Federal Housing Administration Appraiser Certification Practice Test

(FHA) Federal Housing Administration Appraiser Certification Practice Test

FHA Ethical Standards & Professional Conduct 2