USPAP Study Sheet QUESTIONS AND ANSWERS| COMPLETE SOLN

USPAP Study Sheet QUESTIONS AND ANSWERS| COMPLETE SOLN Financial chaos began in the US during the Correct Answer: 1929 stock market crash after the great depression In the 1950s-70s double continued with Correct Answer: -Works related areas-Property taxation-Federal housing programs 1990s trouble was because of... Correct Answer: Mortgage scams and illegal house flipping. 1980s trouble was because of... Correct Answer: the Savings and Loans Crisis 1990s to 2000s trouble was from... Correct Answer: identity theft and appraisal report tampering. Prior to 1930s, appeasing properties could be done by... Correct Answer: mortgage brokers and real estate agents Issues recognized by new professional appraisers Correct Answer: -Provide credible services-Have services provided by ethical and competent individuals-Foster public trust Ad-hoc Committee Correct Answer: Eventually became USPAP-find market value-develop independent authority TAF Correct Answer: The appraisal foundation USPAP has no legal authority but.. Correct Answer: NYS enforces it Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) provided.. Correct Answer: Recognition and authorized federal institutions to reference USPAP Uniform Relocation Assistance and Real Properties Acquisition Policies Act Correct Answer: Where the executive branch followed congress by referencing USPAP With Office of Management and Budget (OMB) Circlular A-129, January 11, 1993.... Correct Answer: Other federal agencies recognized USPAP The IRS bulletin 2006-46, November 13, 2006 generally Correct Answer: Accepted USPAP appraisal standards, defining a "qualified appraisal" Other groups that accept USPAP as integrated standards in their policies. Correct Answer: Fannie mae, farmer mac, the farm credit admin, employee relation council TAF definition Correct Answer: The Appraisal Foundation TAF IS Correct Answer: -A Non-Profit -An org authorized by congress -An org made up of other organizations TAF has _____ boards. Correct Answer: two Two TAF board names Correct Answer: -AQB -ASB TAF Sponsors Correct Answer: -Appraisal sponsors (non-profits) -Affiliate sponsors (non-profits with valuation interest) -International sponsors (non-profit based outside of US with valuation interest) TAF Advisory Councils Correct Answer: The appraisal foundation advisory council (has non-profit organizations) -The inducts advisory council (has for profit organizations) The board of Trustees- 3 functions Correct Answer: 1) Appoints members to its independent boards 2) Secures funding for TAF operations 3) Monitors performance and oversight of TAF and its boards and Advisory Councils "valuation advisories" Correct Answer: Means to identify issues and give guidance. Board also gives written, visual and audio information. Appraiser Qualifications Board Functions Correct Answer: -Establishes minimum education, experience, and other criteria for verification of appraisers and supervisors.-Defines, issues, and promotes qualification criteria-Teaches qualification criteria to states, gov. and others-Creates Licensing and Certification Exams-Responsible for USPAP courses In the wake of the stock market crash and economic depression the first.... Correct Answer: group of appraisers were formed 3 boards on TAF Correct Answer: -The Appraiser Qualifications Board -The Appraisal Standards Board -The Board of Trustees Congress contributed to USPAPs acceptance by Correct Answer: identifying it as the generally accepted set of standard practices for the profession. Assumes conditions contrary to known facts Correct Answer: hypothetical condition An appraiser must prepare a workfile for... Correct Answer: each appraisal A work file must be in existence __________ to the issuance of any report or other communication of assignment results. Correct Answer: P The Appraisal Standards Board- Functions Correct Answer: -Revises and promotes USPAP -Responsible for the subject, content, and substance of USPAP -Establishes standards of professional appraisal practice The Appraisal Subcommittee- Functions Correct Answer: Created as a result of FIRREA (Financial Institutions Reform, Recovery and Information Act.) -Supervises agencies and appraisers and insures government has enough controls in all real estate activity to protect federally regulated financial institutions from loss. What does the preamble contain Correct Answer: the overall purpose and strict of USPAP Bias Correct Answer: a preference or inclination that precludes an appraiser's impartiality, independence, or objectivity in an assignment Extraordinary assumption Correct Answer: Involves a situation directly related to a specific assignment as of the effective date of the assignment results. -If an appraiser did not inspect the interior of a property, the appraiser might use as extraordinary assumption to produce credible results and alert the client and intended users to the uncertainty of the assignment results. Ex. Snow on the roof Hypothetical Condition Correct Answer: A condition, directly related to a specific assignment, which is contrary to what is known by the appriser to exist on the effect date of the assignment results, but is used for the purpose of analysis. -These are typically "what if" scenarios supposed for the purpose of analysis. -Ex. What is zoning was different, what if its a new build. -Most common on new builds Exposure time Correct Answer: Estimated length of time a property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. Exposure time always occurs Correct Answer: PRIOR (before) to the effective date of the appraisal. Exposure time is based on... Correct Answer: Analysis of past events and assumes a competitive and open market. Cost- Fact or Opinion Correct Answer: FACT/Estimate of fact -Ex. When an appraiser is asked to estimate the cost of improvements for a property. Price- Fact or Opinion Correct Answer: Becomes fact once stated! -An appraiser can estimate the price a homeowner should list a property for, but once it is stated by the owner it becomes fact! Value- is it a Fact or Opinion or can be both? Correct Answer: Always an opinion Client definition Correct Answer: The party who engaged, by employment or contract, an appraiser in a specific assignment. -Can be an individual, group, or entity. -Can contact appraiser individually or through an agent. Assignment conditions are... Correct Answer: Assumptions, extraordinary assumptions, hypothetical conditions, laws and regulations, jurisdictional exceptions, and other conditions that affect the scape of work. Assignment Laws include... Correct Answer: constitutions, legislative and court-made law, administrative rues and ordinances. The regulations include rules or orders having legal force issued by an administrative. Assignment conditions are addressed both in.. Corr