USPAP 7 hour course Ch 1 and 2 quiz

Question 1

You are reading an AO in the USPAP publication. Officially, AO are considered:

Answer 1

Other communications, and not part of USPAP

Question 2

A new edition of USPAP has been released. Which statement is true regarding the effective date of this new edition of USPAP?

Answer 2

The ASB determines when the edition of USPAP will be effective.

Question 3

The ASB releases an exposure draft of proposed changes to USPAP, and you wish to provide comments. At a minimum, you will have xx to provide comments to ASB.

Answer 3

30 days

Question 4

Which statement is most accurate regarding the ASB’s analysis of comments to exposure drafts?

Answer 4

Each member of the ASB reads and considers all comments.

Question 5

As the terms are used by the ASB, what is the difference between a Discussion Draft and an Exposure Draft?

Answer 5

An Exposure Draft is a formal proposal to revise USPAP, while a Discussion Draft merely solicits feedback from industry participants.

Question 6

Changes to USPAP may only be made after

Answer 6

Completion of the exposure process and discussion and adoption at a public meeting

Question 7

You want to participate in the USPAP revision process but are busy and prefer not to travel. What is your best option?

Answer 7

Register for ASB meetings and livestream them on your computer as they are happening.

Question 8

Which statement is TRUE about USPAP and appraisal bias?

Answer 8

USPAP has always required appraisers to perform without bias.

Question 9

The topic of appraisal bias is important:

Answer 9

to both appraisers and the public

Question 10

A preference or inclination that precludes an appraiser’s impartiality, independence, or objectivity in an assignment is the USPAP definition of:

Answer 10

Bias

Question 11

An appraiser is required by the xx to be aware of, and comply with, applicable fair housing laws and regulations that apply to the appraiser or to the assignment.

Answer 11

COMPETENCY RULE

Question 12

According to the US Department of Justice, the Fair Housing Act xx real property appraisers.

Answer 12

applies to

Question 13

Protected classes under the Fair Housing Act include all of the following EXCEPT:

Answer 13

Income Level

Question 14

The Equal Credit Opportunity Act specifically prohibits discrimination by:

Answer 14

Creditors

Question 15

Under the Equal Credit Opportunity Act, if a lender relies on an appraisal that is unintentionally discriminatory, who can be held liable for discrimination?

Answer 15

Both, the lender and the appraiser.

Question 16

An appraiser indicates in an appraisal report that the subject propberty is in an “inner city” neighborhood that is “crime-ridden”. Which statement is TRUE regarding this situation?

Answer 16

The terms are potential “code words” and could be considered evidence of discrimination.

Question 17

An appraiser’s use of “code words” can be evidence of discrimination. According to the FHFA, examples of potential code words include:

Answer 17

Crime-ridden neighborhood, Lacking pride of ownership, Inner-city neighborhood.

Question 18

In a disparate impact discrimination case, a plaintiff does not have to show

Answer 18

Discriminatory intent by the other party.

Question 19

A lender is required by the Equal Credit Opportunity Act to provide a mortgage borrower with a copy of the appraisal report that was performed on the property. Does this make the borrower an intended user of the appraisal, according to USPAP?

Answer 19

No.

Question 20

With regard to fair housing laws and regulations, USPAP:

Answer 20

Requires the appraiser to recognize and comply with laws that are applicable.

Question 21

An appraiser is looking in the USPAP publication for advice and guidance related to developing and reporting an appraisal and what the appraiser should consider in complying with current fair housing laws. The appraiser should look to:

Answer 21

AO 16

Question 22

Which of the following statements about USPAP and laws is TRUE?

Answer 22

Appraisers are required to be aware of and comply with applicable laws, but USPAP does not list which laws are applicable.