RPA Legal & Regulatory Framework for Appraisals 2

Question 1

Under FIRREA, which federal agency has primary oversight responsibility for ensuring financial institution compliance with appraisal regulations?

Accepted Answer

The Appraisal Subcommittee (ASC)

Answer

The Federal Reserve Board

Answer

The Office of the Comptroller of the Currency (OCC)

Answer

The Federal Housing Finance Agency (FHFA)

Question 2

Which of the following transactions is EXEMPT from federal appraisal requirements under Title XI of FIRREA?

Accepted Answer

A business loan where real estate is not the primary collateral

Answer

A federally related transaction involving a $500,000 commercial property

Answer

A refinance of a residential property valued at $300,000

Answer

A purchase of a residential property with FHA financing

Question 3

What is the primary purpose of the Uniform Standards of Professional Appraisal Practice (USPAP) Standard 3?

Accepted Answer

Governing appraisal review assignments

Answer

Governing the development of real property appraisals

Answer

Governing mass appraisal development

Answer

Governing consulting assignments

Question 4

An appraiser is asked to provide a 'desk review' of another appraiser's report. Under USPAP, if the reviewer forms an opinion of value, what standard applies?

Accepted Answer

Standards 3 and 4 apply to the review assignment

Answer

Only Standard 1 applies since it is a valuation

Answer

Standards 1 and 2 apply exclusively

Answer

No USPAP standard applies to desk reviews

Question 5

Under USPAP's Scope of Work Rule, who is responsible for determining the appropriate scope of work for an appraisal assignment?

Accepted Answer

The appraiser, who must determine what is necessary to produce credible results

Answer

The client, who sets all parameters before the assignment begins

Answer

The state licensing board, which mandates scope requirements by property type

Answer

The intended user, who specifies the methods to be employed

Question 6

Which doctrine holds that an appraiser may be liable to third parties who rely on a negligently prepared appraisal, even without privity of contract?

Accepted Answer

Negligent misrepresentation

Answer

Respondeat superior

Answer

Promissory estoppel

Answer

Contributory negligence

Question 7

The Dodd-Frank Wall Street Reform Act introduced the concept of Customary and Reasonable (C&R) fees primarily to address which concern?

Accepted Answer

Ensuring appraisers are compensated fairly to preserve their independence

Answer

Standardizing appraisal fees across all states

Answer

Requiring lenders to pay appraisers directly rather than through AMCs

Answer

Setting maximum appraisal fees for government-backed loans