RPA Legal & Regulatory Framework for Appraisals 5

Question 1

Under USPAP Standard 2, an appraiser must include which of the following in a real property appraisal report?

Accepted Answer

A signed certification that meets the requirements of Standards Rule 2-3

Answer

Standards Rule 2-3 mandates that each written real property appraisal report contain a signed certification by the appraiser, including specific required statements about bias, personal interest, and USPAP compliance.

Question 2

An appraiser suspects that a client is using an appraisal to facilitate mortgage fraud. Under USPAP's Ethics Rule, the appraiser should:

Accepted Answer

Refuse to perform or continue the assignment

Answer

USPAP's Ethics Rule states that appraisers must not knowingly participate in an assignment that is fraudulent, and upon discovery of potential fraud, the appraiser should refuse to perform or continue the assignment.

Question 3

The Home Valuation Code of Conduct (HVCC), which was a precursor to Dodd-Frank's appraiser independence rules, was applicable to:

Accepted Answer

Conventional loans sold to Fannie Mae and Freddie Mac

Answer

The HVCC applied specifically to conventional one- to four-unit residential mortgage loans sold to Fannie Mae or Freddie Mac, not to all federally related transactions or government-backed loans.

Question 4

Under federal law, a state-licensed residential appraiser (non-certified) is eligible to appraise federally related transactions involving non-complex residential properties valued up to:

Accepted Answer

$400,000

Answer

State-licensed (non-certified) appraisers may appraise non-complex residential properties in federally related transactions with a transaction value below the $400,000 de minimis threshold.

Question 5

An appraiser receives a subpoena to testify about a confidential appraisal. Under USPAP, the appraiser may disclose confidential information because:

Accepted Answer

A subpoena constitutes compulsion by due process of law, which is an exception to confidentiality

Answer

USPAP's Ethics Rule permits disclosure of confidential information when required by due process of law, including a valid court subpoena compelling testimony.

(RPA) Real Property Appraiser Certification Practice Test

(RPA) Real Property Appraiser Certification Practice Test

RPA Legal & Regulatory Framework for Appraisals 5