Laws and Regulations Ch 1 Quiz

Question 1

The real estate brokerage and sales profession remained entirely unregulated throughout the 20th century (1900 - 1999).

Answer 1

FALSE

Question 2

If a financial institution believes an appraiser has violated USPAP in preparing an appraisal report, the institution is required to:

Answer 2

Report the appraiser to the state licensing agency

Question 3

In a federally related transaction with a loan amount of $1.5 million, who would be permitted under FIRREA to complete the appraisal?

Answer 3

A state certified appraiser

Question 4

Which law requires states to issue temporary practice licenses and certificates to appraisers in other states?

Answer 4

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

Question 5

As a result of Dodd-Frank amendments to FIRREA, the ASC was required to:

Answer 5

Set up a national hotline to receive complaints against appraisers and others

Question 6

One of the purposes of the Interagency Appraisal and Evaluation Guidelines is to establish ____________ for institutions.

Answer 6

Standards of appraiser independence

Question 7

Which of these is NOT currently a federal financial institution regulatory agency?

Answer 7

FSLIC

Question 8

As a result of amendments to FIRREA, the ASC is required to maintain a national registry of:

Answer 8

Appraisal management companies

Question 9

Who would be permitted to complete an appraisal for a federally related transaction on a complex single-family property with a loan amount of $500,000?

Answer 9

either a certified residential or a certified general appraiser

Question 10

An FHA loan of $400,000 or less does not require an appraisal.

Answer 10

FALSE

Question 11

An amendment to FIRREA made in 2010 requires that AMCs:

Answer 11

Must be registered

Question 12

The Dodd-Frank Act, signed in July 2010, contained amendments to FIRREA.

Answer 12

TRUE

Question 13

According to the Interagency Appraisal and Evaluation Guidelines, loans with a transaction value of $400,000 or less do not require appraisals.

Answer 13

TRUE

Question 14

A financial institution provides a copy of a sales contract on the subject property to an appraiser. This is considered __________ under the Interagency Appraisal and Evaluation Guidelines.

Answer 14

Permissible

Question 15

State requirements for “Trainee Appraiser” licensees are required to meet the minimum requirements as established by the:

Answer 15

Appraiser Qualifications Board

Question 16

Appraisals coordinated by AMCs are required to comply with USPAP.

Answer 16

TRUE

Question 17

If a financial institution believes an appraiser has violated USPAP, the institution is required to report the appraiser to the applicable state licensing agency.

Answer 17

TRUE

Question 18

At the time of the Barnard Report in 1986, almost every state had an appraiser licensing and certification program.

Answer 18

FALSE

Question 19

FIRREA prohibits an AMC from being placed on the national registry of AMCs if it is owned by an appraiser who has had his/her appraisal license revoked.

Answer 19

TRUE

Question 20

FIRREA prohibits an AMC from being placed on the national registry of AMCs if it is owned by an appraiser who:

Answer 20

Has had his/her appraisal license or certificate revoked

Question 21

An appraiser is using a Restricted Appraisal Report in a situation where there is another intended user in addition to the client. How must the appraiser identify this additional intended user in the report?

Answer 21

by name only

Question 22

Congress adopted Title XI of FIRREA to address the problem of unregulated persons performing incompetent and/or fraudulent appraisals for federally regulated financial institutions.

Answer 22

TRUE

Question 23

One of the purposes of the Interagency Appraisal and Evaluation Guidelines is to establish standards of appraisal independence for institutions.

Answer 23

TRUE

Question 24

State requirements for “Trainee Appraiser” licensees are required to meet the minimum requirements as established by the Appraiser Qualifications Board (AQB).

Answer 24

TRUE

Question 25

The ASC is required to maintain a national registry of appraisers, but not a national registry of appraisal management companies.

Answer 25

FALSE

Question 26

According to the Interagency Appraisal and Evaluation Guidelines, loans with a transaction value of $400,000 or less do not require:

Answer 26

Appraisals 

Question 27

The ASC can remove an appraiser from the National Registry for up to ____ pending the outcome of state disciplinary proceedings.

Answer 27

90 days

Question 28

FIRREA requires states to issue temporary practice licenses and certificates to appraisers from other states.

Answer 28

TRUE

Question 29

An FHA-insured loan of $400,000 or less does not require an appraisal.

Answer 29

FALSE

Question 30

State appraisal regulatory agencies, including BREA, are required to process complaints and investigations against appraisers within:

Answer 30

A reasonable time period

Question 31

Which profession was the first to be regulated - real estate brokerage or real estate appraisal?

Answer 31

Real estate brokerage 

Question 32

The ASC has the authority to oversee state AMC registration programs.

Answer 32

TRUE

Question 33

The ASC consists of ____ members.

Answer 33

7

Question 34

Federal regulations require that appraisals for federally-related transactions must be:

Answer 34

written

Question 35

A real estate agent who attempts to coerce an appraiser into inflating a value opinion could be in violation of:

Answer 35

The Truth in Lending Act

Question 36

Appraisals performed for federally-related transactions must conform to USPAP.

Answer 36

TRUE

Question 37

Who is responsible for enforcing the requirements regarding "customary and reasonable" compensation for appraisers, as specified in the FRB Interim Final Rule?

Answer 37

Federal financial institution regulatory agencies and the Bureau of Consumer Financial Protection

Question 38

The Interagency Appraisal and Evaluation Guidelines prohibit an appraiser from performing an appraisal in a situation in which:

Answer 38

The appraiser has a direct interest in the property being appraised

Question 39

State appraisal regulatory agencies are subject to biennial audits by the ASC.

Answer 39

TRUE

Question 40

Appraisals coordinated by AMCs are required to comply with:

Answer 40

USPAP

Question 41

Congress adopted Title XI of FIRREA to address the problem of unregulated persons performing incompetent and/or fraudulent appraisals for:

Answer 41

Federally regulated financial institutions 

Question 42

Under the regulations adopted in accordance with the Truth in Lending Act, a "covered person" would include:

Answer 42

appraisal management companies, mortgage brokers, real estate agents

Question 43

Under the Interagency Appraisal and Evaluation Guidelines, a financial institution is NOT permitted to ask an appraiser to:

Answer 43

Accept a reduced fee if the loan does not close

Question 44

As a result of Dodd-Frank amendments to FIRREA, state appraisal licensing and certification agencies are required to have a reciprocity policy.

Answer 44

TRUE

Question 45

The event that led to the regulation of the appraisal profession was the:

Answer 45

Savings and Loan Crisis 

Question 46

FIRREA references ____________ as the source for minimum appraiser qualifications.

Answer 46

the AQB

Question 47

In a federally-related lending transaction, is it permissible for the borrower to engage the appraiser?

Answer 47

No, never 

Question 48

If the ASC finds that a state's appraisal regulatory is not in compliance with FIRREA, the ASC can refuse to recognize certified and licensed appraisers from that state.

Answer 48

TRUE

Question 49

In a federally-related transaction, a lender is permitted to select an appraiser solely on the basis of his/her membership in an appraisal organization.

Answer 49

FALSE

Question 50

Which of these is NOT one of the powers of the ASC as outlined in FIRREA?

Answer 50

investigate and prosecute complaints against licensed or certified appraisers* 

Question 51

Which of these was a provision of the Financial Institutions Reform Recovery and Enforcement Act?

Answer 51

each state was required to set up an appraiser licensing and certification program, appraisals for loans made by federally-regulated financial institutions must be performed by licensed or certified appraisers, USPAP was referenced as the generally-accepted standard for appraisals for federally-regulated institutions

Question 52

If a financial institution provides a copy of a sales contract to an appraiser, this is considered undue influence under the Interagency Appraisal and Evaluation Guidelines.

Answer 52

FALSE

Question 53

Which of these would be considered a PERMISSIBLE action by a financial institution under the Interagency Appraisal and Evaluation Guidelines?

Answer 53

asking an appraiser to provide additional supporting information about the value

Question 54

Under the Interagency Appraisal and Evaluation Guidelines, who is the client when an AMC engages an appraiser on behalf of a regulated institution?

Answer 54

The institution

Question 55

The Interagency Appraisal and Evaluation Guidelines prohibit an appraiser from performing an appraisal in a situation where the appraiser has a direct interest in the property being appraised.

Answer 55

TRUE

Question 56

If an institution suspects that a state certified appraiser has violated USPAP, an institution is _________ to file a complaint with the appropriate state licensing and certification agency.

Answer 56

required

Question 57

At the time of the Barnard Report in 1986, __________ had an appraiser licensing and certification program.

Answer 57

Very few states 

Question 58

If the ASC wishes to prescribe regulations, it must first:

Answer 58

establish an advisory committee

Question 59

The event that led to the regulation of the appraisal profession was:

Answer 59

The Savings and Loan Crisis 

Question 60

In a federally-related lending transaction, it is permissible for the borrower to engage the appraiser.

Answer 60

FALSE

Question 61

In a federally related transaction with a loan amount of $1.5 million, who would be permitted under FIRREA to complete the appraisal?

Answer 61

a state certified appraiser

Question 62

State appraisal regulatory agencies are required to process complaints and investigations against appraisers within six months.

Answer 62

FALSE

Question 63

A real estate agent that attempts to coerce an appraiser into inflating a value opinion could be in violation of the federal Truth in Lending Act.

Answer 63

TRUE

Question 64

The section of FIRREA that deals with discrimination refers to:

Answer 64

an appraiser not being considered for an assignment solely because he/she does not belong to a particular appraisal organization*

Question 65

What entity was referenced in FIRREA as a recognized source for appraisal standards and appraiser qualifications?

Answer 65

The Appraisal Foundation

Question 66

The ASC has monitoring authority over California's appraisal regulatory agency.

Answer 66

TRUE

Question 67

Amendments to FIRREA in 2010 require that AMCs must be registered.

Answer 67

TRUE

Question 68

"Any computerized model used by mortgage originators and secondary market issuers to determine the collateral worth of a mortgage secured by a consumer's principal dwelling" is the FIRREA definition of:

Answer 68

automated valuation model