FHA Legal & Ethical Standards in Appraisal 2

Question 1

Under USPAP's Confidentiality section, an appraiser may disclose assignment results without client consent to:

Accepted Answer

A state appraisal regulatory agency conducting an investigation

Answer

USPAP permits disclosure to state enforcement bodies and peer reviewers authorized by law without client consent.

Question 2

An FHA appraiser discovers mid-assignment that the property was recently used as a methamphetamine lab. The most appropriate action is to:

Accepted Answer

Disclose the finding in the report and adjust value accordingly

Answer

The appraiser must disclose known adverse environmental conditions in the report; if remediation is unverified, value impact must be addressed.

Question 3

The Dodd-Frank Act's appraiser independence requirements prohibit a lender from:

Accepted Answer

Conditioning payment on the appraiser hitting a specific value

Answer

Conditioning appraisal fees or future work on a predetermined value outcome violates appraiser independence regulations.

Question 4

A trainee appraiser signs an FHA appraisal report. Which statement is correct?

Accepted Answer

This is prohibited because FHA requires a Certified Residential or Certified General appraiser to sign

Answer

FHA requires the appraiser to hold at minimum a Certified Residential credential; trainees are not eligible to sign FHA reports.

Question 5

The ETHICS RULE in USPAP requires appraisers to avoid performing an assignment with which of the following?

Accepted Answer

A fee contingent on the appraised value reported

Answer

USPAP's Ethics Rule prohibits contingent fees tied to the value conclusion because they create a prohibited bias.

(FHA) Federal Housing Administration Appraiser Certification Practice Test