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Commercial Appraisal Reviewed questions with answers.
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Commercial Appraisal Reviewedquestions with answers.
The current edition of USPAP ANS -You are reviewing an appraisal that had an effective date of January
15, 2005, for the "as is" value and an effective date of January 15, 2006 for the prospective value. The
report's date is February 15, 2005. Which edition of USPAP will you use to guide you in the performance
of YOUR appraisal review?
You need to be diplomatic in your communications with the appraiser. ANS -While performing an
appraisal review for a loan underwriting department, you need to contact the appraiser to discuss some
issues. Which statement below is correct?
Requiring the use of a highly improbable hypothetical condition in revising the value in the appraisal
ANS -Which of the following conditions is a review appraiser NOT permitted to accept in an appraisal
review assignment?
Staff review appraisers and fee review appraisers ANS -What are the two kinds of review appraiser
positions described in the course materials?
A Certified Residential Appraiser reviewing an appraisal of an office building ANS -Assuming an appraiser
lived and worked in a "mandatory" state (requiring that licensed or certified appraisers perform all
appraisal assignments), which of the following review assignments would an appraiser need to refuse?
Best comparables not used
Data not adequately related to the appraisal problem
Contradictions and inconsistencies within the appraisal process ANS -Appraisal reviews are typically
necessary due to three things:
An independent assessment of the appraisal for the purpose of determining whether the appraisal is
compliant with the minimum standards as outlined in the agencies' appraisal regulations. ANS -What do
the regulatory agencies mean by an appraisal review?
,The lending institution should have an established policy that addresses this question. Generally, the in-
house review staff would contact the appraiser to discuss the deficiencies with him or her and suggest
that adjustments be considered. The review staff may consider removing a deficient appraiser from the
approved list of appraisers if appraisals by that appraiser are consistently sub-standard. Where fraud is
suspected, the reviewer should report the deficient appraiser to the state appraiser board. ANS -What
should the reviewer do when an appraisal is flawed and does not comply with regulatory standards?
Contact the appraiser, discuss the deficiencies, and suggest adjustments to be considered ANS -What
does a lending institution's staff reviewer generally do when an appraisal report does not comply with
regulatory standards?
Quality control
Compliance
Litigation support ANS -What are three purposes of an appraisal review?
Appraisal review ANS -What is the most common way that quality is controlled in the appraisal
profession?
Highlight this issue in your review report to alert the lender of the issue ANS -In performing an appraisal
review for a lender considering a new loan, you read a brief reference to a problem of environmental
contamination on the subject property. As a reviewer, you should:
Evaluating the merits of the reconciliation analysis ANS -An accountant (not licensed as an appraiser) is
reviewing an appraisal for a client. Which of the following tasks would fall outside of his authority to
perform an administrative review?
Notify the client that you do not have the competence to perform the review when you accept the
assignment ANS -You have never performed an appraisal of a marina property, but have been asked to
review an appraisal of a marina. You want to accept the assignment. Your response MUST be:
She must decline the assignment ANS -A review appraiser accepted an assignment to review an
appraisal of a ski resort, but the reviewer had never appraised a ski resort. Which of the following would
NOT be required of the review appraiser?
, COMPETENCY RULE ANS -Which of the following parts of USPAP would the reviewer be in danger of
violating if he performed a technical review on an appraisal of a property type he has never appraised?
You have performed an appraisal review, as defined in USPAP. ANS -Your personal attorney requests a
meeting to help prepare questions for cross examination of the opposing party's appraiser. You go over
the appraisal report, pointing out several weak areas, and help him frame some questions to pose to
that appraiser on the witness stand. However, you do not read the entire report and make no other file
notations for your records. You do this as a "professional courtesy" and do not charge a fee for this
consultation. Which of the following is TRUE?
Administrative ANS -Which of the following four "types" of appraisal reviews can be performed without
an appraiser license or certification, without violating USPAP?
adequacy and appropriateness ANS -Complete the following statement taken from The Appraisal of Real
Estate, 13th edition: "The primary function of the appraisal reviewer is not to appraise the subject
property but to examine the contents of a report and form an opinion as to its ___________ and
_______________."
STANDARD 3 ANS -Which STANDARD in USPAP governs the development of an appraisal review?
You need to investigate the license requirements for appraisal reviews in the state where the property is
located. ANS -In the case study, you were presented with a review assignment in a state in which you
are not licensed. Which of the following statements is true regarding this assignment?
Yes, you are permitted to discuss another appraiser's work. If the discussion is not evaluating the quality
of the other appraiser's work or expressing an opinion of value about the subject of the appraisal, those
are circumstances when Standards Rules 3 and 4 would not govern your actions. ANS -Based on this FAQ
answer, are you, as a licensed or certified appraiser, ever permitted to discuss another appraiser's report
without being subject to STANDARDS 3 and 4?
Valuation services ANS -An administrative review performed by an unlicensed employee of a financial
institution would be considered part of:
Both valuation services and appraisal practice ANS -According to USPAP Advisory Opinion 21, appraisal
review is considered part of:
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