Chapter 2

Question 1

In 1987, eight US appraisal organizations formed…

Answer 1

The Appraisal Foundation

Question 2

True or False? The Appraisal Foundation has significant legal authority to enforce USPAP.

Answer 2

False.

The appraisal Foundation is a private entity and has no enforcement authority in any jurisdiction.

Question 3

In the 1970’s, who developed uniform rules for mortgage underwriting?

• professional appraisal organizations
• The Appraisal Foundation
• Fannie Mae and Freddie Mac
• The Appraisal Subcommittee

Answer 3

Fannie Mae and Freddie Mac

Question 4

The transfer of money from low interest-bearing accounts to higher interest-bearing accounts is referred to as

• disintermediation
• recession
• surplus productivity
• profiteering

Answer 4

Disintermediation

Question 5

What’s the Appraisal Fioundation?

Answer 5

The Appraisal Foundation is a not-for-profit organization, established exclusively for educational and scientific purposes.

Question 6

The appraisal foundation consists of what 3 principal boards?

Answer 6

Board of Trustees (BOT)

Appraisal Standards Board (ASB)

Appraiser Qualifications Board (AQB)

Question 7

What is the board of trustees and what are they responsible for?

Answer 7

Acts as an executive board for the Foundation. It is responsible for, among other things, appointing members of the ASB, AQB, and APB.

Question 8

What is the ASB responsible for?

Answer 8

Responsible for creating standards for ethics and performance of appraisers. This is accomplished through the Uniform Standards of Professional Appraisal Practice (USPAP). In short, the ASB is responsible for USPAP.

Question 9

What is the AQB responsible for?

Answer 9

AQB is responsible for creating requirements for licensure, certification, and recertification of appraisers, which the states adopt and enforce.

Question 10

What was the Appraisal Practices Board (APB) responsible for?

Answer 10

The Appraisal Practices Board (APB) was responsible for issuing voluntary guidance on recognized valuation methods and techniques. This board was disbanded in 2017 and no longer exists.

Question 11

Who first developed USPAP in 1986?

Answer 11

The Ad Hoc Committee

Question 12

When and who adopted USPAP?

Answer 12

The ASB in 1989

Question 13

True or false: The Appraisal Foundation has legal authority

Answer 13

False. It’s a private entity with no enforcement authority in any jurisdiction.

Question 14

What year and why was FIREEA passed?

Answer 14

1989. As a result for the Savings and Loan Crisis of the 1980’s

Question 15

What is FIRREEA often called?

Answer 15

The Savings and Loan Bailout Bill

Question 16

What does FIREEA require?

Answer 16

Required each state to establish an agency for the licensing and certification of real property appraisers.

Question 17

Which of these entities is NOT a member of the Appraisal Subcommittee?

• The Appraisal Foundation
• Department of Housing and -Urban Development
• Federal Housing Finance Agency
• Office of the Comptroller of the Currency

Answer 17

The Appraisal Foundation

Question 18

Which of these is NOT a protected class, according to the Fair Housing Act?

• religion
• political party affiliation
• familial status
• national origin

Answer 18

Political party affiliation

Question 19

True or False? The Appraisal Subcommittee’s mission is to ensure that real estate appraisers who perform appraisals in federally-related transactions are sufficiently trained and tested to assure competency and independent judgment.

Answer 19

True

Question 20

True or False? The Dodd-Frank Act gave the ASC the authority to create a National Registry of appraisal management companies.

Answer 20

True

Question 21

The _________ monitors and reviews the practices, procedures, activities and organizational structure of The Appraisal Foundation.

• AQB
• Dep’t of HUD
• ASC
• FIRREA

Answer 21

ASC

Question 22

The first universally accepted appraisal report form appeared in the

• 1920s
• 1950s
• 1970s
• 1990s

Answer 22

1970’s

Question 23

The ______ maintains a National Registry of licensed and certified appraisers.

AQB
ASB
ASC
FIRREA

Answer 23

ASC

Question 24

The Uniform Standards of Professional Appraisal Practice (USPAP) was copyrighted by:

The American Society of Appraisers
The Appraisal Qualifications Board
The Appraisal Foundation
The Appraisal Subcommittee

Answer 24

The Appraisal Foundation.

The Uniform Standards of Professional Appraisal Practice (USPAP) was developed by the Ad Hoc Committee in 1986 and 1987 and was copyrighted in 1987 by the Appraisal Foundation.

Question 25

The Uniform Standards of Professional Appraisal Practice (USPAP) was developed by the Ad Hoc Committee and was copyrighted by The _________________. Appraisal Foundation Appraisal Subcommittee Royal Institution of Chartered Surveyors Appraisal Qualifications Board

Answer 25

Appraisal Foundation

Question 26

The first organized appraisal groups appeared in the 1910s 1930s 1950s 1980s

Answer 26

1930's

Question 27

ECOA applies to all the following types of loans EXCEPT Condominiums Manufactured homes Junior liens Vacant land

Answer 27

Vacant Land

Question 28

The Appraisal Foundation is a _________ entity and has _____ legal enforcement authority in any jurisdiction. government, no private, full private, no quasi-judicial, full

Answer 28

Private, no

Question 29

The Appraisal Foundation is a ___________ organization. congressional for-profit not-for-profit professional appraisal

Answer 29

Not-for-profit

Question 30

________ has regulatory authority in enforcing the housing requirements in most civil rights legislation. Fannie Mae VA HUD FDIC

Answer 30

HUD

Question 31

The largest professional appraisal society in the U.S. is the American Society of Appraisers Appraisal Institute American Society of Farm Managers and Rural Appraisers International Right of Way Association

Answer 31

Appraisal Institute

Question 32

The federal agencies directly involved in fair lending include all of the following EXCEPT VA The Federal Reserve FDIC OCC

Answer 32

VA

Question 33

The Savings and Loan Crisis happened in the Great Depression Early 1960s Late 1970s Late 1980s

Answer 33

Late 1980's

Question 34

The Appraisal Foundation was established in 1984 1987 1991 1995

Answer 34

1987

Question 35

Mortgage interest rates peaked in the U.S. in the late 1960s early 1980s early 1990s late 2000s

Answer 35

Early 1980's

Question 36

Handicap is defined as a physical impairment only a mental impairment only a physical or mental impairment someone with both physical and mental impairments

Answer 36

A physical or mental impairment

Question 37

Which is considered to be “other communications” provided by the ASB? Advisory Opinions Index Q & As All of the above

Answer 37

All of the above

Question 38

``` The secondary market came into prominence in mortgage lending in the mid 1950s early 1960s late 1970s late 1990s ```

Answer 38

Late 1970's. During the latter part of the 1970s, the secondary market emerged, and served to smooth out the uneven flow of loan funds.

Question 39

The AQB and the ASB were created for the express purpose of promoting and maintaining a high level of ____________ public consciousness education for appraisers public trust appraiser independence

Answer 39

Public Trust

Question 40

Within The Appraisal Foundation, there are ________ advisory councils that provide research and advice to the Foundation. two three four five

Answer 40

Two

Question 41

The professional society that specializes in appraising personal property is the American Society of Appraisers Appraisal Institute American Society of Farm Managers and Rural Appraisers National Association of Appraisers

Answer 41

American Society of Appraisers

Question 42

The appraisal standards and qualification criteria issued by The Appraisal Foundation's boards achieve legal authority by adoption, citation or implementation by government agencies individual appraisers appraisal management companies clients

Answer 42

Government Agencies

Question 43

________ has regulatory authority in enforcing the housing requirements in most civil rights legislation. Fannie Mae VA HUD FDIC

Answer 43

HUD