FHA Ethical Standards & Professional Conduct 3

Question 1

Which USPAP rule specifically addresses the appraiser's obligation to keep client information confidential?

Accepted Answer

The Confidentiality section of the Ethics Rule

Answer

The Confidentiality section of USPAP's Ethics Rule prohibits appraisers from disclosing confidential information or assignment results without client consent.

Question 2

An FHA appraiser completes an appraisal and later receives a request from the seller's attorney for a copy of the report. What should the appraiser do?

Accepted Answer

Decline unless the client authorizes disclosure

Answer

Under USPAP's Confidentiality section, the appraiser may only disclose the report to the client or parties the client authorizes.

Question 3

What does the USPAP Record Keeping Rule require appraisers to include in their workfile?

Accepted Answer

All data, information, and documentation necessary to support the appraiser's opinions and conclusions

Answer

The Record Keeping Rule requires workfiles to contain all data and documentation necessary to support the appraiser's analyses, opinions, and conclusions.

Question 4

Under HUD Mortgagee Letter policies, an FHA appraiser who knowingly provides a fraudulent appraisal may face which consequence?

Accepted Answer

Loss of FHA roster eligibility and potential criminal prosecution

Answer

Knowingly providing a fraudulent FHA appraisal can result in removal from the FHA appraiser roster, civil money penalties, and referral for criminal prosecution.

Question 5

An appraiser is offered a bonus by the lender for completing FHA appraisals within 24 hours. This arrangement is:

Accepted Answer

Prohibited because contingent compensation based on assignment completion compromises independence

Answer

Contingent compensation tied to the completion or outcome of an assignment is prohibited under USPAP's Management section and FHA independence requirements.

(FHA) Federal Housing Administration Appraiser Certification Practice Test

(FHA) Federal Housing Administration Appraiser Certification Practice Test

FHA Ethical Standards & Professional Conduct 3