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USPAP 2020-2021 > Chapter 1 Intro USPAP > Flashcards

Chapter 1 Intro USPAP Flashcards

1
Q

The generally-recognized ethical and performance standards for the appraisal profession in the United States.

A

USPAP

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2
Q

The USPAP document includes four sections:

A

the PREAMBLE;
DEFINITIONS;
Rules; and
Standards (including Standards Rules).

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3
Q

USPAP provides:

A

A common basis for comparison (e.g., are we doing the appropriate work for the type of assignment?)

A reference source for all users of the document

A basis for uniform enforcement for state regulatory agencies

A reason for clients, other intended users, and the public to place their trust in the services performed by professional appraisers

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4
Q

The Foundation helps _________financial losses in federally-insured mortgages by setting stringent qualifications and standards for appraisers involved in real estate transactions. Maintaining those qualifications and standards is essential to protecting the United States government, consumers, and taxpayers and promoting the ______ ______.

A

Prevent; public trust

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5
Q

The confluence of historical economic events and the development of the uniform appraisal standards and regulatory structure occurred in the late

A

1980’s

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6
Q

The crisis from the mid-1980s to the mid-1990s resulted in the failure of approximately one-third of the nation’s savings and loan associations.

A

savings and loan crisis

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7
Q

In 1986, in response to the S&L Crisis, eight professional appraisal organizations in the United States along with the Appraisal Institute of Canada formed an

A

Ad Hoc Committee on the Uniform Standards of Professional Appraisal Practice.

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8
Q

The Ad Hoc committee recognized three critical issues related to appraisal practice. The necessity for:

A

Credible appraisal practice necessary for the general economic well-being;

Ethical and competent individuals to meet society’s need for appraisal practice; and

The performance of professional appraisal practices that would create public trust in the individual appraiser and in appraisal practice.

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9
Q

In 1987, the committee established The_________ ____________ to implement USPAP as the generally accepted set of appraisal standards in the United States.

A

Appraisal Foundation

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10
Q

True or false: The Foundation is not a regulatory agency, but it provides the tools that regulators use.

A

True

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11
Q

The APpraisal FOundation is organized into 3 main boards

A

Board of Trustees (BOT)- leadership and oversight for the foundation

Appraiser Qualifications Board (AQB)- Sets minimum qualification criteria that must be met before entering the profession and qualifications to maintain a credential

Appraisal Standards Board (ASB)- Establishes and revises the USPAP on an annual basis

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12
Q

In 1989, the U.S. Congress enacted this act which authorized the Foundation as the source of appraisal standards and qualifications.

A

Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA)

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13
Q

Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 created the

A

Appraisal Subcommittee

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14
Q

The Appraisal Subcommittee’ (ASC) core functions:

A

Monitor the requirements established by state regulatory agencies for certification and licensing of appraisers qualified to perform appraisals in connection with federally related transactions.

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15
Q

When did mortgage scams and illegal property flipping preoccupy the lending and appraisal industries?

A

1990’s

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16
Q

When did the housing market take a downturn?

A

Late 2007

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17
Q

Even though there are different asset types, ___ _________ __________ were included in USPAP to establish one set of standards for the appraisal profession.

A

all appraisal disciplines

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18
Q

The concept of trust obligates the appraiser to act in the public’s interest, which means the appraiser must act with:

A 
Independence
Impartiality
Objectivity
Competency
Integrity
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19
Q

This act provided recognition and authorized federal financial institution regulatory agencies to reference USPAP in their regulations.

A

FIRREA

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20
Q

The __________ ________followed Congress by referencing USPAP in the Uniform Relocation Assistance and Real Property Acquisition Policies Act.

A

Executive Branch

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21
Q

True or false: The appraisal foundation is a public and government run agency

A

FALSE.

The foundation is a private entitity and not a government run agency

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22
Q

True or false: The Foundation and its boards have no legal oversight or enforcement authority in any jurisdiction.

A

True

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23
Q

How does USPAP achieve legal authority?

A

By adoption, citation, or implementation by government agencies

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24
Q

True or False: The Appraisal Foundation has the authority to enforce the requirements of USPAP.

A

False

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25
The Foundation is structured to reflect what?
its position within the appraisal profession as an organization of organizations.
26
True or False: The Foundation is a non-profit organization that was specifically authorized by Congress to establish real property appraiser qualifications and appraisal standards.
True
27
The Appraisal Foundation is governed by a Board of Trustees and has two independent boards with Congressional authorization:
Appraiser Qualifications Board (AQB) | Appraisal Standards Board (ASB)
28
The Foundation has three categories of sponsors:
Appraisal Sponsors, consisting of non-profit appraisal organizations serving appraisers; Affiliate Sponsors, consisting of non-profit organizations serving those with an interest in valuation, primarily users of appraisal services; and International Sponsors, consisting of either non-profit or non-stock organizations based outside the U.S. with an interest in valuation.
29
The Appraisal Foundation has two advisory councils:
The Appraisal Foundation Advisory Council (TAFAC), which is made up of representatives from non-profit organizations and government entities; and The Industry Advisory Council (IAC), which has members from for-profit organizations.
30
The Board of Trustees (BOT) of the Foundation has three primary functions:
Appoints members to its independent boards Secures funding for TAF operations Monitors performance and oversight of the Foundation and its Boards and Advisory Councils
31
The BOT is the _____________body of the Foundation.
governing
32
The BOT has additional functions to promote professionalism and to ensure public trust in the valuation profession.
It identifies emerging issues and issues voluntary guidance, in the form of Valuation Advisories, on recognized valuation methods and techniques, which may apply to all disciplines within the appraisal profession. It provides for written, visual, and audio information and voluntary guidance to be developed and communicated on topics that appraisers and users of appraisal services believe are most pressing. It creates opportunities for interaction with and input from leaders in the profession through the establishment of resource panels and the utilization of subject matter experts to research, develop, create, and review publications and guidance to benefit appraisers and the users of appraisal services.
33
The Appraiser Qualifications Board (AQB) serves a number of important functions.
Establishes minimum education and experience 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 Works in conjunction with the ASB to develop the 7-hour and 15-hour National USPAP Courses Administers the USPAP Instructor Certification/Recertification Program and oversees the 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
34
Which entity is responsible for establishing education and experience requirements for licensing and certification of appraisers?
Appraiser Qualifications Board (AQB)
35
Which entity appoints members of the AQB and ASB?
Board of Trustees (BOT)
36
Qualification criteria for appraiser certification and recertification are disseminated to state appraisal boards by the:
Appraiser Qualifications Board (AQB)
37
The Appraisal Standards Board (ASB) writes, amends, and interprets the
USPAP | Uniform Standards of Professional Appraisal Practice
38
USPAP includes the
PREAMBLE, DEFINITIONS, Rules, and Standards (including Standards Rules).
39
For convenience of reference, USPAP contains a
Foreword and a Table of Contents.
40
The USPAP publication also includes
“Other Communications”, an Index, Advisory Opinions and Frequently Asked Questions.
41
“Other Communications” are not part of USPAP and are not __________
enforcable
42
The Q&As are compiled every
2 years
43
FAQs are arranged by
key USPAP topics, bound with USPAP and the Advisory Opinions, and distributed by the Foundation.
44
FAQs are examples of
"Other Communications"
45
True or false: THe FAQ's are not part of USPAP
true
46
The ASB does not make edits to USPAP in a
vacuum
47
Most changes to USPAP have been the result of
unsolicited letters or responses to exposure drafts from a variety of sources
48
The ASB also addresses and exposes relevant issues ____________
Independently
49
The ASB and AQB are independent, but they work jointly in several areas such as
the National USPAP Courses and the Instructor Certification and Recertification Programs.
50
Advisory Opinions are best described as
not part of USPAP, but included as reference material
51
USPAP is written, amended, and interpreted by the:
Appraisal Standards Board (ASB)
52
Created as a result of FIRREA, this committee has a supervisory role over state appraiser regulatory agencies and real property appraisers.
Appraisal Subcommittee
53
This Committee has a duty to ensure that the government has sufficient controls in place over all real property appraisal activity to protect the federally regulated financial institutions from loss.
Appraisal Subcommittee
54
FIRREA established the ASC within the
FFIEC | Federal Financial Institutions Examination Council
55
This is 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
FFIEC
56
These people work for federal banking agencies follow FFIEC principles and standards in their examination of financial institutions.
Bank Examiners
57
The ASC has seven members, each appointed by the head of his or her agency. The members represent:
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)
58
True or False: The ASC is not part of the Foundation, but has authority from Title XI of FIRREA to monitor the activities of the Foundation, including both the ASB and AQB in regard to real property issues.
True
59
The ASC administers ________ to the Foundation that are used to support, in part, the real property-related work of the AQB and ASB.
grants
60
Title XI of FIRREA also authorized this committee to oversee the activities of state appraisal licensure and certification agencies.
ASC | Appraisal Subcommittee
61
ASC operations are funded by
state certified or licensed appraisers through their license renewal payment in the form of a National Registry fee and by AMC Registry fees. These fees are paid to the states, who then transfers them to the ASC.
62
The state appraiser regulatory agencies have enforcement authority within their appraiser certification programs, including the authority to establish ________than the AQB minimum criteria for appraiser requirements and standards of practice.
higher
63
States are __________; therefore, an appraiser must understand the licensing and certification laws and regulations in each state where the appraiser practices.
independent
64
The makeup of state appraiser regulatory agencies varies by
state
65
State appraiser regulatory agencies are responsible for
- validating qualifications of applicants - issuing credentials to qualified individuals - overseeing renewals of credentials in the form of continuing education, and - taking disciplinary action against appraisers who violate USPAP or other appraisal standards.
66
Investigation of complaints is often handled by
state regulatory gencies however, sometimes the investigation or prosecution functions are the responsibility of other agencies within state government.
67
State appraiser regulatory agencies are also responsible for administering registries of
AMCs | Appraisal Management Companies
68
Which is NOT a responsibility of the Appraisal Subcommittee (ASC)?
Writing, interpreting, and amending USPAP
69
Who is responsible for issuing credentials to individual appraisers?
State Appraisal Regulatory Agencies
70
USPAP is enforced by:
State appraiser licensing/certification agencies
71
Which entity maintains the official National Registry of state-certified and licensed appraisers?
Appraisal Subcommittee (ASC)
72
This provides a common basis for all appraisal practice.
USPAP
73
USPAP manages both the ______ side and the ___________ side of appraisal practice.
ethical; performance
74
The Rules in USPAP cover
general practice policies, and the Standards Rules are elaborations of these policies to specific disciplines and assignment types.
75
Layour of USPAP
1. PREAMBLE 2. DEFINITIONS 3. RULES 3a. ETHICS 3b. COMPETENCY 3c. RECORD KEEPING 3d. SCOPE OF WORK 3e. JURISDICTIONAL EXCEPTION 4. STANDARDS 1–10 5. Comments
76
This describes the overall purpose and structure of USPAP.
Preamble
77
This includes a section titled STATEMENTS ON APPRAISAL STANDARDS. Statements are not addressed in this course since there are currently no active Statements.
Preamble
78
This section contains terms that have distinct meanings in USPAP.
Definitions
79
This section describes the general ethical requirements for appraisers.
Ethics Rule
80
This defines what must be included in a workfile for an appraisal or appraisal review assignment.
Record keeping rule
81
This rule describes general performance requirements for appraisers.
Competency rule
82
This rule elaborates on problem identification, determination of an appropriate scope of work, and disclosure of the scope of work that was performed.
Scope of Work rule
83
This rule recognizes that laws or regulations take precedence over USPAP in certain situations.
Jurisdictional Exception rule
84
The titles of each of the Standards identifies the discipline and/or task.
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 Comments appear throughout USPAP. They are an integral part of USPAP and have the same weight as the component they address. The Comments provide interpretation and establish the context and conditions for application.
85
The USPAP publication also contains additional guidance material ("other communications"), which includes
Advisory Opinions, USPAP Frequently Asked Questions, and an Index.
86
True or False: The guidance material is not a part of USPAP but is included in the publication for reference.
True
87
Advisory Opinions and FAQs offer advice and guidance, but do not ______ new standards or ________ existing standards.
establish; interpret
88
``` Which of these is considered an integral part of USPAP and has the same weight as the components they address? USPAP FAQs Advisory Opinions USPAP Q&As Comments ```
comments
89
Why are USPAP Advisory Opinions issued? To establish new appraisal standards To offer advice To interpret existing standards To revise existing standards
To offer advice
90
Which part of USPAP establishes the requirements for workfile content for an appraisal or appraisal review assignment? JURISDICTIONAL EXCEPTION RULE Advisory Opinions RECORD KEEPING RULE COMPETENCY RULE
Record Keeping Rule
91
USPAP begins on page 1 with the
Preamble
92
The DEFINITIONS begin on
Page 3
93
RULES are found on pages
7 through 15
94
STANDARDS start on page __ and run through page ____
16; 58
95
the last page of USPAP.
58
96
The rest of the publication, consisting of Advisory Opinions, Frequently Asked Questions, and an Index, is
"Other Communications"
97
USPAP addresses the controlling steps and sequences in the appraisal process:
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
98
In USPAP, the appraisal process is divided into two distinct types of activity:
Development and reporting
99
The first step in the appraisal process is: Perform market analysis and highest and best use Determine scope of work Reconcile the value indicators Identify the problem
Identify the problem
100
Which step in the appraisal process involves communication of the appraiser's opinions and conclusions? Determination of scope of work Reporting Receipt of fee from the client Identification of the problem
Reporting
101
In USPAP, the appraisal process is divided into two distinct types of activity: _________ and __________. Opinion, conclusion New, old Development, reporting Analysis, appraisal
Development, reporting
102
``` Who is responsible for issuing credentials to individual appraisers? Appraisal Practices Board (APB) State appraisal regulatory agencies Appraisal Subcommittee (ASC) Appraiser Qualifications Board (AQB) ```
State appraisal regulatory agencies

USPAP 2020-2021 (14 decks)

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