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USPAP exam |202 5 UPDATE |REAL EXAM QUESTIONS AND VERIFIED ANSWERS/ACCURATE SOLUTIONS |GET IT 100% CORRECT!! ALREADY GRADED A+ The ASB has issued an exposure draft of proposed changes to the USPAP. What must occure before these proposed changes may be made to USPAP? The proposed changes must be discussed and adopted at a public meeting USPAP Advisory opinions are considered by the ASB to be: Other communications and not part of the USPAP The new edition of the USPAP has been released. Which statement is true reguarding the effective date of this new edition if USPAP The ASB determines whent he edition of USPAP will be effective. _________ Change is one of the reasons the ASB added the Nondiscrimination section to the ethics rule Social You send the ASB a letter with a comment reguarding a proposed change to the USPAP. Who will read it? All members of the ASB
The ending effective date for the 2024 edition of the USPAP is: To be determined With reguard to prohibitions on bias and descrimination the revisions to the current edition of USPAP were made in order to: Make existing prohibitions clearer and mor direst Which statement reguarding bias and USPAP is true? USPAP has always prohibited appraisers from performing assignment with bias. Is there a difference between a discussion draft and an exposure draft, and if so what is the difference? An exposure draft is a formal proposal to revise USPA, while a discussion draft merely solicites feedback from industry participants. A steakholder is the appraisal proffesion wants to participate in the USPAP revision proscess but does not have the time to travel to ASB meetings in person. What is the individuals best option? Register for ASB meetings and live stream them 0n their computer. Which term is defined in federal regultions as "a residential structure that contains 1 to 4 living units weather or not that structure is attached to the real property?
racial and ethnic makeup of the market area. Since the information came from the Census Bureau, which is part of the Fedral Government, may the appraiser use or rely on this data in valuing the subject property for a Federally regulated lending transaction. NO, in most instances, an appraiser is prohibited in using or relying on this information about protected characteristics An appraiser does not want to ever be accused of providing a discriminatory appraisal report. They believe that is they decide they will nolonger preform appraisals for any clients who live in a zip code area in which there is a high number of minority residents, they can reduce that risk. Is this likely to be a violation of the civil rights act of 1866 and therefore, USPAP? YES An appraiser is offered the opportunity to perform an appraisal assignment on a residence in a market area with which the appraiser is geographically competent. However, the appraiser discovers the client is a member of a racial minority group and declines to perform the appraisal. Does USPAP permit the appraiser to refuse to enter into an agreement to perform an assignment based on the client's race? No, the practice of refusing to enter into an appraisal assignment because of the client's race violates USPAP A state passes a law that prohibits housing discrimination based on a person's political affiliation. Is this an example of a "state and local antidiscrimination" law? Yes, because state laws may establish additional protected classes
Which statement regarding bias and USPAP is TRUE? USPAP has always prohibited appraisers from performing an assignment with bias. With regard to prohibitions on bias and discrimination, the revisions to the current edition of USPAP were made in order to: Make existing prohibitions clearer and more direct _______ change is one of the reasons why the ASB added the Nondiscrimination section to the ETHICS RULE. Social Which term is defined in federal regulations as "a residential structure that contains one to four living units whether or not that structure is attached to real property"? Dwelling Which of the following is NOT a federal antidiscrimination law that is specifically referenced in the Nondiscrimination section of the ETHICS RULE? Dodd-Frank Act A residential appraiser agrees to perform an appraisal on real property for mortgage lending, for an FHA-insured loan. The appraiser is engaged by an appraisal management company (AMC). Who is responsible for determining what antidiscrimination laws apply to the assignment? The appraiser
An appraiser is valuing a nonresidential property. According to the appraiser's research, there are no antidiscrimination laws that apply to the appraiser or to the assignment. In that case, is the appraiser allowed, under USPAP, to use or rely on the personal characteristics of individuals in developing this appraisal? Yes, there are circumstances where USPAP allows the appraiser to use and rely on the personal characteristics of individuals Which statement best describes bias and USPAP requirements for appraisal practice? An appraiser must not perform an assignment with bias. Under USPAP, when may an appraiser perform an assignment with bias? Never An appraiser regularly performs appraisal assignments in two different census tracts. The population of Census Tract A is primarily Black, while the population of Census Tract B is predominately white. Both areas have similar crime statistics. The appraiser typically includes the crime statistics in appraisal reports prepared for properties in Census Tract A, but not in Census Tract B. What might this suggest? The appraiser may be using crime statistics as a pretext for race. An appraiser is valuing a property in an area where there is a large number of residents of a particular ethnicity. The appraiser researches and uses comparables from a community 10 miles away, which was selected because it has a similar ethnic makeup. The appraiser states in the
report, "The comparables are located in a community with similar access to employment." According to USPAP, the appraiser has attempted to conceal their use or reliance upon ethnic makeup by use of: A pretext Regarding familial status, the Fair Housing Act contains a specific exception related to: Housing for older persons In an appraisal report for a mortgage lending transaction, an appraiser includes the following: "This is a crime-ridden area and homes show poor pride of ownership." What, if anything, could be wrong with this statement? The statement contains potential code words that could be evidence of discrimination Commercial appraisers do not have to concern themselves with antidiscrimination laws and regulations, because these laws and regulations only apply to appraisals performed on residential housing. False In a business appraisal report, an appraiser includes the following: “The subject is located across the street from a grocery store that serves the area’s immigrant population.” What, if anything, could be wrong with including this statement in the appraisal report? The reference to "immigrants" could indicate the appraiser has used or relied on national origin, race, or ethnicity in the appraisal
Consider this example for a specific appraisal assignment: FHAct and ECOA do not apply to the appraiser or to the assignment. No other law prohibits the use or reliance on a protected characteristic. If the use or reliance upon such a characteristic is essential to the assignment, before the appraiser uses or relies on that characteristic, the appraiser still must determine ________________. Whether use or reliance on the characteristic is necessary for credible assignment results An appraiser is valuing a property for a residential lending transaction, and the Fair Housing Act and ECOA apply. If applicable for the assignment, under what circumstance would there be an exception that allows the use or reliance on an otherwise protected characteristic? If use or reliance on the characteristic is expressly permitted in the law You are searching for the definition of an appraisal-related term and discover that it is not defined in USPAP. What does that mean? The standard dictionary definition of that word or term applies Why are certain words or terms defined in USPAP? To clarify the meaning of the word or term in USPAP The definition of assignment elements was retired from USPAP because: The assignment elements listed in the prior definition might be different in an appraisal review assignment.
When a word or term is retired from the DEFINITIONS in USPAP, what does it mean? The word or term may still appear in USPAP, and its standard dictionary definition applies. Many individuals, including appraisers, provide valuation services. According to USPAP, what distinguishes an appraiser from another professional who provides valuation services? The expectation that the individual will perform competently, independently, impartially, and objectively An individual who sometimes acts as an appraiser is providing a valuation service in another capacity. What is this individual's obligation under USPAP? They must not represent themselves as acting in the capacity of an appraiser. An appraiser is valuing a non-residential property. As part of the scope of work, the appraiser personally views the exterior of the building from the street but does not set foot on the property or go inside the building. In their appraisal report, may the appraiser certify that they made a personal inspection of the improvements? Yes, because an exterior-only inspection made by the appraiser is a personal inspection. An appraiser had previously made an interior and exterior inspection of a property two years ago, and has been engaged by a different client to appraise the property again. The client asks the appraiser not to go to the subject property and instead, use information from the prior inspection to determine the property's physical characteristics. May the appraiser certify that they made a personal inspection of the subject property in the new report?
