USPAP Compliance and Enforcement Flashcards

How often does the Appraisal Standards Board update USPAP?

Answer: Every two years

USPAP is updated on a two-year cycle, with each edition effective for a two-year period.

Under USPAP, if an appraiser discovers a significant error in a completed and delivered report, what should the appraiser do?

Answer: Notify the client and correct the report if the error is material

USPAP requires appraisers to notify clients and correct reports when errors are discovered that are material to the appraisal.

What is the role of the Appraisal Qualifications Board (AQB) in the appraisal profession?

Answer: Establishing minimum education, experience, and examination criteria for licensure

The AQB establishes the minimum qualification criteria — education, experience, and examination — that states must adopt for appraiser licensure.

Under FIRREA, federally related transactions require the use of a state-licensed or state-certified appraiser for appraisals above a certain threshold. Who enforces this requirement?

Answer: Federal financial institution regulators (e.g., OCC, FDIC, Federal Reserve)

Federal financial institution regulators such as the OCC, FDIC, and Federal Reserve enforce the requirement for licensed or certified appraisers in federally related transactions.

Which of the following statements about USPAP's applicability is accurate?

Answer: USPAP applies to all appraisers in all 50 states by state law adoption

All 50 states have adopted USPAP as the professional standard for appraisers, making it legally enforceable through state licensing laws.

Under USPAP, the term 'appraiser' refers to one who is expected to:

Answer: Perform valuation services competently and in a manner that is independent, impartial, and objective

USPAP defines an appraiser as one who is expected to perform services competently and with independence, impartiality, and objectivity.