FHA Regulatory Framework & Compliance 2

Question 1

Under HUD Handbook 4000.1, what is the maximum age of an FHA appraisal before it must be updated or a new appraisal ordered?

Accepted Answer

180 days

Answer

FHA appraisals are valid for 180 days from the effective date of the appraisal under HUD Handbook 4000.1.

Question 2

Which federal law requires appraisers to be state-licensed or state-certified for federally related transactions?

Accepted Answer

FIRREA

Answer

The Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 mandated state licensing and certification for appraisers in federally related transactions.

Question 3

When an FHA appraiser identifies a health or safety issue that the seller refuses to correct, what is the appraiser's required action?

Accepted Answer

Report the condition and make the appraisal subject to repair

Answer

The appraiser must note the deficiency and condition the appraisal 'subject to repair' so the lender is aware and can require correction before closing.

Question 4

Which entity maintains the FHA Appraiser Roster and has authority to remove appraisers from it?

Accepted Answer

HUD/FHA

Answer

HUD/FHA maintains the FHA Appraiser Roster and can remove appraisers who fail to comply with FHA requirements independent of state board actions.

Question 5

Under FHA guidelines, a 'subject to' appraisal means:

Accepted Answer

The appraised value assumes repairs or conditions will be met

Answer

A 'subject to' appraisal provides a value that is conditioned upon the completion of specified repairs, alterations, or conditions before closing.

(FHA) Federal Housing Administration Appraiser Certification Practice Test

(FHA) Federal Housing Administration Appraiser Certification Practice Test

FHA Regulatory Framework & Compliance 2