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 Appraisal Subcommittee (ASC) monitors the appraisal regulatory programs of federal financial institution regulatory agencies as established by FIRREA Title XI.

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

Business loans where real estate is not the primary collateral are exempt from Title XI appraisal requirements because the transaction is not primarily secured by real property.

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

USPAP Standard 3 governs the development of appraisal reviews, requiring the reviewer to form an opinion about the quality of another appraiser's work.

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

When an appraiser performs an appraisal review that includes forming an opinion of value, USPAP Standards 3 (development) and 4 (reporting) govern that assignment.

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

Under USPAP's Scope of Work Rule, it is the appraiser's responsibility to identify and perform the scope of work necessary to produce credible assignment results.

(RPA) Real Property Appraiser Certification Practice Test

(RPA) Real Property Appraiser Certification Practice Test

RPA Legal & Regulatory Framework for Appraisals 2