FHA Regulatory Framework & Compliance 3

Question 1

Under FHA requirements, which of the following must an appraiser report when observed during a property inspection?

Accepted Answer

All readily observable conditions affecting safety, soundness, or security

Answer

FHA appraisers must report all readily observable deficiencies affecting the property's safety, soundness, or security as part of the minimum property assessment.

Question 2

Which regulatory document governs the conduct of FHA appraisers in addition to USPAP?

Accepted Answer

HUD Handbook 4000.1 (Single Family Housing Policy Handbook)

Answer

HUD Handbook 4000.1 contains FHA-specific appraisal requirements that supplement USPAP and must be followed by all FHA Roster appraisers.

Question 3

What is the FHA's stance on appraisers using comparable sales from outside the subject's immediate market area?

Accepted Answer

It is permitted when necessary with adequate explanation

Answer

FHA allows appraisers to use comparables outside the immediate market area when sufficient local data is unavailable, provided the appraiser adequately explains the use.

Question 4

When must an FHA appraiser photograph the subject property?

Accepted Answer

For the front, rear, street scene, and all rooms and deficiencies

Answer

HUD requires FHA appraisers to photograph the front, rear, and street scene of the subject, plus all rooms, deficiencies, and comparable sales used in the report.

Question 5

The Appraiser Independence Requirements (AIR) established under Dodd-Frank primarily prohibit:

Accepted Answer

Lenders from coercing, threatening, or bribing appraisers to reach a target value

Answer

AIR prohibits lenders and other parties from coercing, threatening, or influencing appraisers to adjust their value conclusions to meet predetermined targets.

(FHA) Federal Housing Administration Appraiser Certification Practice Test

(FHA) Federal Housing Administration Appraiser Certification Practice Test

FHA Regulatory Framework & Compliance 3