USPAP EXAM PRACTICE
QUESTIONS WITH COMPLETE
SOLUTIONS
USPAP provides: -- Answer ✔✔ 1. A common basis for comparison
2. A reference source for all users of the document
3. A basis for uniform enforcement for state regulatory agencies
4. A reason for clients, other intended users, and the public to place
their trust in the services performed by professional appraisers
The Appraisal Foundation is organized into three main boards: --
Answer ✔✔ Board of Trustees (BOT), which provides volunteer
leadership and oversight for the Foundation.
Appraiser Qualifications Board (AQB), an independent board of the
Foundation, which sets minimum qualification criteria that must be met
before entering the profession and qualifications to maintain a
credential.
Appraisal Standards Board (ASB), an independent board of the
Foundation, which establishes the Uniform Standards of Professional
Appraisal Practice (USPAP) on an annual basis.
The Foundation helps -- Answer ✔✔ prevent 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 public trust.
Appraisal practice -- Answer ✔✔ is an evolving profession influenced by
historical events. The confluence of historical economic events and the
development of the uniform appraisal standards and regulatory
structure occurred in the late 1980s.
The savings and loan crisis (S&L) -- Answer ✔✔ from the mid-1980s to
the mid-1990s resulted in the failure of approximately one-third of the
nation's savings and loan associations.
in 1986 -- Answer ✔✔ in response to the S&L Crisis, eight professional
appraisal organizations in the United States along with the Appraisal
Institute of Canada formed an Ad Hoc Committee on the Uniform
Standards of Professional Appraisal Practice. Some of the committee's
initial work focused on defining "market value" for real property
appraisals prepared for use by federally related agencies.
The committee recognized three critical issues related to appraisal
practice. The necessity for: -- Answer ✔✔ -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
,in 1987 -- Answer ✔✔ the committee established The Appraisal
Foundation to implement USPAP as the generally accepted set of
appraisal standards in the United States.
in 1989 -- Answer ✔✔ the U.S. Congress enacted the Financial
Institutions Reform, Recovery, and Enforcement Act (FIRREA), which
authorized the Foundation as the source of appraisal standards and
qualifications. Title XI of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 created the Appraisal Subcommittee
(ASC) of the Federal Financial Institutions Examination Council (FFIEC).
Under Title XI, one of the ASC's core functions is to monitor the
requirements established by state regulatory agencies for certification
and licensing of appraisers qualified to perform appraisals in
connection with federally related transactions.
in the 1990s -- Answer ✔✔ mortgage scams and illegal property
flipping preoccupied the lending and appraisal industries. The financial
issues continued and even expanded into the 2000s, with appraisal
identify theft and tampering with appraisal records.
The housing market downturn in late ______ became an economic
meltdown in 2008-2009, with ramifications not seen since the Great
Depression. -- Answer ✔✔ 2007
in 2010 -- Answer ✔✔ the Foundation began to provide timely
voluntary guidance to appraisers in the form of Valuation Advisories on
recognized valuation methods and techniques.
the year 2019 marked -- Answer ✔✔ the 30th anniversary of the
passage of Title XI of FIRREA. During this time, it has advanced the
, public trust in the appraisal and valuation profession, which underpins
the greatest economy in the world.
USPAP was created to -- Answer ✔✔ promote and preserve public trust
in professional appraisal practice.
The concept of trust obligates the appraiser to act in the public's
interest, which means the appraiser must act with: -- Answer ✔✔
independence, impartiality, objectivity, competency, and integrity
public acceptance of USPAP -- Answer ✔✔ Congress contributed to
USPAP's acceptance by identifying it as the generally recognized
standards of practice in the appraisal profession. Title XI of the
Financial Institutions Reform, Recovery and Enforcement Act of 1989
(FIRREA) provided recognition and authorized federal financial
institution regulatory agencies to reference USPAP in their regulations.
The Executive Branch followed by referencing USPAP in the Uniform
Relocation Assistance and Real Property Acquisition Policies Act. With
the Office of Management and Budget (OMB) Circular A-129, dated
January 11, 1993, other federal agencies recognized USPAP. The
Internal Revenue Service (IRS) Internal Revenue Bulletin 2006-46,
dated November 13, 2006, referenced USPAP as generally accepted
appraisal standards in defining a "qualified appraisal." Private industry
groups such as Fannie Mae, Freddie Mac, Farmer Mac, the Farm Credit
Administration, and Worldwide ERC (formerly known as the Employee
Relocation Council) have referenced USPAP and integrated it in their
policies. The IRS reinforced the importance of USPAP when it issued a
new rule which governs how cash and noncash charitable contributions
should be valued. The new rule specifically cites the Uniform Standards
of Professional Appraisal Practice (USPAP) of The Appraisal Foundation.
QUESTIONS WITH COMPLETE
SOLUTIONS
USPAP provides: -- Answer ✔✔ 1. A common basis for comparison
2. A reference source for all users of the document
3. A basis for uniform enforcement for state regulatory agencies
4. A reason for clients, other intended users, and the public to place
their trust in the services performed by professional appraisers
The Appraisal Foundation is organized into three main boards: --
Answer ✔✔ Board of Trustees (BOT), which provides volunteer
leadership and oversight for the Foundation.
Appraiser Qualifications Board (AQB), an independent board of the
Foundation, which sets minimum qualification criteria that must be met
before entering the profession and qualifications to maintain a
credential.
Appraisal Standards Board (ASB), an independent board of the
Foundation, which establishes the Uniform Standards of Professional
Appraisal Practice (USPAP) on an annual basis.
The Foundation helps -- Answer ✔✔ prevent 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 public trust.
Appraisal practice -- Answer ✔✔ is an evolving profession influenced by
historical events. The confluence of historical economic events and the
development of the uniform appraisal standards and regulatory
structure occurred in the late 1980s.
The savings and loan crisis (S&L) -- Answer ✔✔ from the mid-1980s to
the mid-1990s resulted in the failure of approximately one-third of the
nation's savings and loan associations.
in 1986 -- Answer ✔✔ in response to the S&L Crisis, eight professional
appraisal organizations in the United States along with the Appraisal
Institute of Canada formed an Ad Hoc Committee on the Uniform
Standards of Professional Appraisal Practice. Some of the committee's
initial work focused on defining "market value" for real property
appraisals prepared for use by federally related agencies.
The committee recognized three critical issues related to appraisal
practice. The necessity for: -- Answer ✔✔ -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
,in 1987 -- Answer ✔✔ the committee established The Appraisal
Foundation to implement USPAP as the generally accepted set of
appraisal standards in the United States.
in 1989 -- Answer ✔✔ the U.S. Congress enacted the Financial
Institutions Reform, Recovery, and Enforcement Act (FIRREA), which
authorized the Foundation as the source of appraisal standards and
qualifications. Title XI of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 created the Appraisal Subcommittee
(ASC) of the Federal Financial Institutions Examination Council (FFIEC).
Under Title XI, one of the ASC's core functions is to monitor the
requirements established by state regulatory agencies for certification
and licensing of appraisers qualified to perform appraisals in
connection with federally related transactions.
in the 1990s -- Answer ✔✔ mortgage scams and illegal property
flipping preoccupied the lending and appraisal industries. The financial
issues continued and even expanded into the 2000s, with appraisal
identify theft and tampering with appraisal records.
The housing market downturn in late ______ became an economic
meltdown in 2008-2009, with ramifications not seen since the Great
Depression. -- Answer ✔✔ 2007
in 2010 -- Answer ✔✔ the Foundation began to provide timely
voluntary guidance to appraisers in the form of Valuation Advisories on
recognized valuation methods and techniques.
the year 2019 marked -- Answer ✔✔ the 30th anniversary of the
passage of Title XI of FIRREA. During this time, it has advanced the
, public trust in the appraisal and valuation profession, which underpins
the greatest economy in the world.
USPAP was created to -- Answer ✔✔ promote and preserve public trust
in professional appraisal practice.
The concept of trust obligates the appraiser to act in the public's
interest, which means the appraiser must act with: -- Answer ✔✔
independence, impartiality, objectivity, competency, and integrity
public acceptance of USPAP -- Answer ✔✔ Congress contributed to
USPAP's acceptance by identifying it as the generally recognized
standards of practice in the appraisal profession. Title XI of the
Financial Institutions Reform, Recovery and Enforcement Act of 1989
(FIRREA) provided recognition and authorized federal financial
institution regulatory agencies to reference USPAP in their regulations.
The Executive Branch followed by referencing USPAP in the Uniform
Relocation Assistance and Real Property Acquisition Policies Act. With
the Office of Management and Budget (OMB) Circular A-129, dated
January 11, 1993, other federal agencies recognized USPAP. The
Internal Revenue Service (IRS) Internal Revenue Bulletin 2006-46,
dated November 13, 2006, referenced USPAP as generally accepted
appraisal standards in defining a "qualified appraisal." Private industry
groups such as Fannie Mae, Freddie Mac, Farmer Mac, the Farm Credit
Administration, and Worldwide ERC (formerly known as the Employee
Relocation Council) have referenced USPAP and integrated it in their
policies. The IRS reinforced the importance of USPAP when it issued a
new rule which governs how cash and noncash charitable contributions
should be valued. The new rule specifically cites the Uniform Standards
of Professional Appraisal Practice (USPAP) of The Appraisal Foundation.
