Chapter 1: Introduction to USPAP 60 Questions with Answers,100% CORRECT

Document Content and Description Below

Chapter 1: Introduction to USPAP 60 Questions with Answers To promote and maintain public trust and confidence in professional appraisal practice. - CORRECT ANSWER Why was USPAP developed? Unifo... rm Standards of Professional Appraisal Practice - CORRECT ANSWER What does USPAP stand for? 1. Provides common basis for comparison 2. Provides a reference source 3. Provides a basis for uniform enforcement 4. Provides a reason for clients and the public to trust appraisers - CORRECT ANSWER How does USPAP benefit the appraisal profession? 1. 1929 - Stock Market crash 2. 1950-1970 - public works-related areas, property taxation, and federal housing program turmoil and abuse 3. 1980s - Savings and Loan Crisis 4. 1990s - mortgage scams and illegal property flipping 5. 2000s - appraiser identity theft and appraisal report tampering 6. 2007-2009 - housing market downturn and economic meltdown - CORRECT ANSWER Major historical events that influenced appraising Early 1930s - CORRECT ANSWER When were the first organized groups of professional appraisers were formed within the United States? 1. Providing credible appraisal services for society 2. Fulfilling a need for appraisal services by ethical and competent individuals 3. Performing professional services in ways that create public trust in appraisals - CORRECT ANSWER What were the three critical issues recognized by the earliest appraisal organizations (1950s-1960s)? 1. The Board of Trustees (BOT) 2. The Appraiser Qualifications Board (AQB) 3. The Appraisal Standards Board (ASB) - CORRECT ANSWER What are the three independent boards that are a part of The Appraisal Foundation? Ad-Hoc Committee (formed from 8 organizations based in US) - CORRECT ANSWER In the 1980s, what organization was formed to create a common set of standards for professional appraisal practice? Valuation Advisories - CORRECT ANSWER In 2010, TAF began to provide timely voluntary guidance to appraisers in the form of what on recognized valuation methods and techniques? 1. real 2. personal 3. intangible - CORRECT ANSWER What type of property does USPAP establish standards for appraising? Independence Impartiality Objectivity Competency Integrity - CORRECT ANSWER What 5 attributes must an appraiser act with? A private entity - CORRECT ANSWER Is TAF a private entity or a government agency? No - CORRECT ANSWER Does TAF and its boards have legal oversight or enforcement authority in any jurisdiction? Via adoption and implementation by government agencies through regulation or by private enterprise in the form of contract requirements - CORRECT ANSWER How does USPAP achieve legal authority? Yes - CORRECT ANSWER Do the AQB and ASB have congressional authorization? 1. Appraisal Sponsors 2. Affiliate Sponsors 3. International Sponsors - CORRECT ANSWER What are the 3 categories of sponsors TAF has? Appraisal Sponsors - CORRECT ANSWER Sponsor of TAF that consist of non-profit appraisal organizations Affiliate Sponsors - CORRECT ANSWER Sponsor of TAF that consist of non-profit organizations with an interest in valuation International Sponsors - CORRECT ANSWER Sponsor of TAF that consist of either non-profit or non-stock organizations based outside the US with an interest in valuation 1. The Appraisal Foundation Advisory Council (TAFAC) 2. The Industry Advisory Council (IAC) - CORRECT ANSWER What 2 advisory councils are a part of TAF? The Appraisal Foundation Advisory Council (TAFAC) - CORRECT ANSWER Advisory council of TAF made up of representatives from non-profic organizations and government entities. The Industry Advisory Council (IAC) - CORRECT ANSWER Advisory council of TAF which has members from for-profit organizations The Board of Trustees (BOT) - CORRECT ANSWER The governing body of TAF 1. Appoint members to the Foundation's independent boards 2. Secure funding for TAF operations 3. Monitor performance and oversight of TAF and its Boards and Advisory Councils - CORRECT ANSWER What are the 3 primary functions of the BOT? - Establishes minimum education, experience, and other criteria for certification and recertification of real property appraisers and supervisors - Defines, issues, and promotes qualification criteria - Disseminates qualification criteria to states, government entities, and others - Creates and maintains the National Uniform Licensing and Certification Appraisal Examinations - Is responsible for program administration of the 7-hour and 15-hour National USPAP Courses and the Instructor Certification/Recertification Program - Certifies national USPAP instructors and determines policy for AQB Instructor Review Panel - Administers the Course Approval Program (CAP) - Administers the review of undergraduate and graduate real estate degree programs - Writes semi-annual Q&As in response to questions received regarding the Real Property Appraiser Qualification Criteria, National Uniform Licensing and Certification Examinations, CAP, or any other AQB-related issue or program - CORRECT ANSWER What does the AQB do? The Appraisal Standards Board (ASB) revises and promulgates the Uniform Standards of Professional Appraisal Practice (USPAP). The ASB is responsible for the subject, content, and substance of USPAP and other communications related to appraisal standards. Issues guidance in the form of Advisory Opinions and Frequently Asked Questions (not a part of USPAP and not enforceable) and Q&As (compiled every 2 years) - CORRECT ANSWER What does the ASP do? USPAP establishes standards of professional appraisal practice for the guidance and education of appraisers and users of appraisal services. - CORRECT ANSWER What does the USPAP used for? Most changes to USPAP have been the result of unsolicited letters or responses to exposure drafts from a variety of sources, including appraisal organizations, government agencies, client groups, work groups, appraisers, and members of the public. - CORRECT ANSWER How are changes to USPAP made? 1989 - FIRREA within the FFIEC - CORRECT ANSWER When and how was the ASC created? 1. Ensures the government has sufficient controls in place over all real estate appraisal activity to protect federally-regulated financial institutions from loss. 2. Also monitors activities of TAF and oversees the activities of state appraisal licensure and certification agencies. 3. Manages grants to TAF that are used to support, in part, the real property-related work of the AQB and ASB. - CORRECT ANSWER What does the ASC do? Yes - CORRECT ANSWER Is the ASC an entity of the federal government? Federal Financial Institutions Examination Council (FFIEC) - CORRECT ANSWER A formal interagency body empowered to prescribe uniform principles, standards, and report forms, and to make recommendations to promote uniformity in the supervision of financial institutions 1. Board of Governors of the Federal Reserve System (FRB) 2. Office of the Comptroller of the Currency (OCC) 3. Federal Deposit Insurance Corporation (FDIC) 4. National Credit Union Administration (NCUA) 5. Department of Housing and Urban Development (HUD) 6. Federal Housing Finance Agency (FHFA) 7. Consumer Financial Protection Bureau (CFPB) - CORRECT ANSWER What agencies do the 7 members of the ASC represent? $40 per appraiser per year - CORRECT ANSWER How much is the annual fee to the ASC? The ASC National Registry on the ASC website - CORRECT ANSWER Where can a database including the names of all state-licensed and certified real property appraisers throughout the United States be found? State Appraiser Regulatory Agencies - CORRECT ANSWER Agencies often governed by a board or council consisting of between 5 and 9 individuals, who are typically appointed by the governor of the state. Public members are often appointed as well. 1. Receiving and processing applications for licensure and certification, validating qualifications, and issuing credentials to qualified individuals 2. Taking disciplinary action against appraisers who violate USPAP or other appraisal standards. 3. Investigation of complaints - CORRECT ANSWER What are state appraiser regulatory agencies responsible for? A brief history of USPAP, lists of current and past ASB members, and a section outlining revisions to the 2018-19 USPAP. - CORRECT ANSWER What does the foreward of the USPAP contain? PREAMBLE DEFINITIONS RULES ETHICS RECORD KEEPING COMPETENCY SCOPE OF WORK JURISDICTIONAL EXCEPTION STANDARDS 1-10 Statements on Appraisal Standards - CORRECT ANSWER USPAPs structural layout The Preamble of USPAP - CORRECT ANSWER Section is USPAP that describes the overall structure of USPAP and sets forth the following general principle: It is essential that appraisers develop and communicate their analyses, opinions, and conclusions to intended users of their services in a manner that is meaningful and not misleading. Page 1 of USPAP The definitions section of USPAP - CORRECT ANSWER Section in USPAP that contains terms that have distinct meanings in USPAP Page 3 of USPAP The Ethics Rule - CORRECT ANSWER Section of USPAP that describes general ethical requirements. The Competency Rule - CORRECT ANSWER Section of USPAP that descibles performance requirements The Record Keeping Rule - CORRECT ANSWER Section of USPAP that defines what must be included in a workfile for an appraisal or appraisal review assignment. It outlines workfile retention periods and explains custody of a workfile and appropriate workfile retention, access, and retrieval requirements. The Scope of Work Rule - CORRECT ANSWER Section of USPAP that elaborates on problem identification, determination of an appropriate scope of work, and disclosure of the scope of work that was performed in an appraisal or appraisal review assignment The Jurisdictional Exception Rule - CORRECT ANSWER Section of USPAP that recognizes that laws or regulations take precedence over USPAP in certain situations STANDARD 1 - Real Property Appraisal, Development STANDARD 2 - Real Property Appraisal, Reporting STANDARD 3 - Appraisal Review, Development STANDARD 4 - Appraisal Review, Reporting STANDARD 5 - Mass Appraisal, Development STANDARD 6 - Mass Appraisal, Reporting STANDARD 7 - Personal Property Appraisal, Development STANDARD 8 - Personal Property Appraisal, Reporting STANDARD 9 - Business Appraisal, Development STANDARD 10 - Business Appraisal, Reporting - CORRECT ANSWER What are standards 1-10 in USPAP? Statements on Appraisal Standards - CORRECT ANSWER Authorized by the by-laws of TAF and are specifically for the purposes of clarification, interpretation, explanation, or elaboration of the USPAP. Statements have the full weight of a Standards Rule and can be adopted by the ASB only after exposure and comment. zero - CORRECT ANSWER How many active statements on appraisal standards are there currently? Comments - CORRECT ANSWER An integral part of USPAP and have the same weight as the component they address. These extensions of the DEFINITIONS, Rules, and Standards Rules provide interpretation and establish the context and conditions for application. Advisory Opinions, USPAP Frequently Asked Questions, and an Index - CORRECT ANSWER What are the three additional guidance materials included in the USPAP publication but are not a part of USPAP? Advisory Opinions - CORRECT ANSWER Issued to illustrate the applicability of appraisal standards in specific situations and to offer advice from the ASB for the resolution of appraisal issues and problems. These do not establish new standards or interpret existing standards. The ASB has published 37 Advisory Opinions. Five have been retired, leaving 32 active Advisory Opinions - CORRECT ANSWER How many advisory opinions are there currently? Rules section - CORRECT ANSWER Pages 7-14 of USPAP Standards section - CORRECT ANSWER Pages 15-62 of USPAP The appraisal process - CORRECT ANSWER Method by which competent appraisers apply their knowledge and skills to solve valuation problems. Provides a model for resolving all kinds of valuation problems, regardless of whether the subject property is real property, personal property, or a business interest. 1. Definition of the problem 2. Determination of the appropriate scope of work 3. Data collection and analysis 4. Application of the approaches to value 5. Reconciliation of value indications and final opinion of value 6. Report of defined value opinions - CORRECT ANSWER What are the 6 steps in the appraisal process? Development and Reporting - CORRECT ANSWER In USPAP, what are the two types of activities the appraisal process is divided into? State appraiser licencing/certification agencies - CORRECT ANSWER Under FIRREA, USPAP is enforced by: Not part of USPAP but included as reference material - CORRECT ANSWER Advisory Opinions are best described as [Show More]

Last updated: 1 year ago

Preview 1 out of 9 pages