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

A hypothetical condition is a condition directly related to a specific assignment that is contrary to what exists on the effective date of the appraisal but is used for analysis purposes.

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

USPAP's Ethics Rule prohibits appraisers from performing assignments that violate applicable laws or from participating knowingly in assignments involving illegal activities.

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 Jurisdictional Exception Rule permits appraisers to disregard a USPAP requirement only when applicable law or regulation in that jurisdiction precludes compliance, not merely for client preference or convenience.

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

ECOA's appraisal disclosure rule (Regulation B) requires lenders to provide applicants with a copy of appraisals and written valuations no later than three business days before loan consummation.

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

The Fair Housing Act prohibits discrimination in appraisals based on protected characteristics, and violations can result in civil and criminal penalties for the appraiser.

(RPA) Real Property Appraiser Certification Practice Test

(RPA) Real Property Appraiser Certification Practice Test

RPA Legal & Regulatory Framework for Appraisals 3