RPA Legal & Regulatory Framework for Appraisals 3

Question 1

Under USPAP, which of the following best describes a 'hypothetical condition'?

Accepted Answer

A condition assumed to be true that is known to be false as of the effective date

Answer

An uncertain future event that may affect value

Answer

An extraordinary assumption about a fact that is uncertain but plausible

Answer

A condition required by the client that contradicts market evidence

Question 2

An appraiser discovers during the assignment that the intended use stated by the client conflicts with applicable law. Under USPAP, what is the appraiser's obligation?

Accepted Answer

Not knowingly participate in an assignment that violates applicable law

Answer

Complete the assignment as directed by the client

Answer

Withdraw from the assignment immediately without comment

Answer

Disclose the conflict in the report but complete the assignment

Question 3

The concept of 'jurisdictional exception' in USPAP allows an appraiser to depart from a specific USPAP requirement when:

Accepted Answer

Applicable law or regulation precludes compliance with that USPAP requirement

Answer

The client requests a less detailed report format

Answer

The property type makes the requirement impractical to apply

Answer

The appraisal is for non-lending purposes

Question 4

Under the Equal Credit Opportunity Act (ECOA), a lender must provide an applicant with a copy of an appraisal used in connection with a credit application no later than:

Accepted Answer

3 business days before loan consummation

Answer

10 business days before consummation

Answer

30 days after the appraisal is completed

Answer

At closing, with the loan documents

Question 5

Which federal act prohibits appraisers from discriminating on the basis of race, color, national origin, religion, sex, familial status, or disability in the performance of appraisals?

Accepted Answer

The Fair Housing Act

Answer

FIRREA Title XI

Answer

The Community Reinvestment Act

Answer

The Home Mortgage Disclosure Act

Question 6

A state-certified residential appraiser is offered an assignment to appraise a complex commercial property worth $2 million. Under USPAP and federal law, this appraiser may:

Accepted Answer

Decline the assignment or accept only if they have competency for this property type

Answer

Complete the assignment since state-certified appraisers have no property-type restrictions

Answer

Accept only if a state-certified general appraiser co-signs the report

Answer

Complete the assignment if the client provides written approval

Question 7

The Interagency Appraisal and Evaluation Guidelines permit 'evaluations' (instead of full appraisals) for federally related transactions below what threshold for non-complex residential properties?

Accepted Answer

$400,000

Answer

$250,000

Answer

$500,000

Answer

$750,000