FHA Legal & Ethical Standards in Appraisal 3

Question 1

The Scope of Work Rule in USPAP requires appraisers to determine the scope that is necessary to produce:

Accepted Answer

Credible assignment results given the intended use

Answer

The scope of work must be sufficient to produce credible results for the stated intended use, not merely satisfy client preference.

Question 2

Which federal law prohibits discriminatory appraisal practices by making it illegal to assign a value to a property based on race or national origin of residents?

Accepted Answer

Fair Housing Act (FHA)

Answer

The Fair Housing Act explicitly prohibits appraisal discrimination based on race, color, national origin, religion, sex, familial status, or disability.

Question 3

An appraiser is asked to perform a 'desktop appraisal' for an FHA loan. Under current HUD guidance, this is:

Accepted Answer

Permitted only for refinances in certain low-risk scenarios per HUD waivers

Answer

HUD has allowed limited desktop or exterior-only appraisals in specific low-risk refinance programs, but interior inspections remain the default for purchase transactions.

Question 4

A borrower contacts an FHA appraiser directly after the appraisal is complete to dispute the value. The appraiser's best course of action is to:

Accepted Answer

Direct the borrower to the lender's formal reconsideration of value process

Answer

Appraiser independence requires value disputes to go through the lender's formal ROV process, not direct borrower pressure on the appraiser.

Question 5

When does USPAP require a signed certification in an appraisal report?

Accepted Answer

In every written appraisal report, without exception

Answer

USPAP's Certification requirement applies to every written appraisal report regardless of transaction type or value.

(FHA) Federal Housing Administration Appraiser Certification Practice Test

(FHA) Federal Housing Administration Appraiser Certification Practice Test

FHA Legal & Ethical Standards in Appraisal 3