RPA Legal & Regulatory Framework for Appraisals

Question 1

Which federal law governs appraisal standards and practices in the United States?

Accepted Answer

Dodd-Frank Wall Street Reform Act

Answer

Gramm-Leach-Bliley Act

Answer

Sarbanes-Oxley Act

Answer

Truth in Lending Act

Question 2

What is the purpose of the Uniform Standards of Professional Appraisal Practice (USPAP)?

Accepted Answer

To establish standards of ethics and competency

Answer

To provide appraisal licensing exams

Answer

To regulate appraisal fees

Answer

To manage property taxes

Question 3

Which organization is responsible for enforcing appraisal regulations under the Dodd-Frank Act?

Accepted Answer

Appraisal Subcommittee (ASC)

Answer

Federal Reserve Board

Answer

Federal Deposit Insurance Corporation

Answer

Securities and Exchange Commission

Question 4

What must an appraiser do to maintain compliance with regulatory requirements?

Accepted Answer

Complete continuing education and follow USPAP

Answer

Ignore state licensing rules

Answer

Set arbitrary fees

Answer

Avoid reporting conflicts of interest

Question 5

Which factor is NOT a regulatory concern for appraisers?

Accepted Answer

Selecting the highest property value arbitrarily

Answer

Maintaining independence and objectivity

Answer

Compliance with USPAP and licensing

Answer

Use of appropriate valuation methods

Question 6

What does the Truth in Lending Act require appraisers to disclose?

Accepted Answer

Loan costs and terms to borrowers

Answer

Accurate property condition reports

Answer

Zoning restrictions

Answer

Market rent analysis

Question 7

Which of the following actions would violate appraisal ethics?

Accepted Answer

Disclosing confidential client information without consent

Answer

Conducting thorough market research

Answer

Using credible data sources

Answer

Documenting all valuation steps

Question 8

How often must appraisers renew their licenses?

Accepted Answer

Every 1 to 2 years

Answer

Every month

Answer

Every 10 years

Answer

Only once when licensed

Question 9

What role do state appraisal boards play?

Accepted Answer

They license and regulate appraisers

Answer

They sell real estate.

Answer

They set mortgage rates.

Answer

They manage property taxes.