USPAP EXAM QUESTIONS WITH DETAILED ANSWERS (100% CORRECT ANSWERS) / ALREADY GRADED A+

USPAP EXAM QUESTIONS WITH DETAILED ANSWERS (100% CORRECT ANSWERS) / ALREADY GRADED A+ USPAP Advisory Opinions are considered by the ASB to be: - Answer- Other communications, and not part of USPAP The new edition of USPAP has been released. Which statement is true regarding the effective date of this new edition of USPAP? - Answer- The ASB determines when the edition of USPAP will be effective. The ending effective date for the 2024 edition of USPAP is: - Answer- To be determined Is there a difference between a Discussion Draft and an Exposure Draft, and if so, what is the difference? - Answer- An exposure draft is a formal proposal to revise USPAP, while a discussion draft merely solicits feedback from industry participants. You send the ASB a letter with a comment regarding a proposed change to USPAP. Who will read it? - Answer- all members of the ASB The ASB has issued an exposure draft of proposed changes to USPAP. What must occur before these proposed changes may be made to USPAP? - Answer- The proposed changes must be discussed and adopted at a public meeting A stakeholder in the appraisal profession wants to participate in the USPAP revision process but does not have the time to travel to attend ASB meetings in person. What is this individual's best option? - Answer- Register for ASB meetings and livestream them on their computer. The PREAMBLE states that USPAP is promulgated for: - Answer- Appraisers and users of appraisal services The primary purpose of USPAP is: - Answer- Promoting and preserving public trust in appraisal practice. _______ change is one of the reasons why the ASB added the Nondiscrimination section to the ETHICS RULE. - Answer- Social With regard to prohibitions on bias and discrimination, the revisions to the current edition of USPAP were made in order to: - Answer- Make existing prohibitions clearer and more direct Which statement regarding bias and USPAP is TRUE? - Answer- USPAP has always prohibited appraisers from performing an assignment with bias. 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"? - Answer- Dwelling Which of the following is NOT a federal antidiscrimination law that is specifically referenced in the Nondiscrimination section of the ETHICS RULE? - Answer- Dodd-Frank Act An appraiser is required to be knowledgeable of, and comply with, ____________ antidiscrimination laws and regulations - Answer- Federal, state, and local An appraiser agrees to perform an appraisal assignment on a residential property for mortgage lending. The assignment comes to the appraiser through an appraisal management company (AMC). Who is responsible for determining what antidiscrimination laws apply to the assignment? - Answer- The appraiser In a real estate lending situation, an individual employs what they believe are neutral policies or practices, however these policies are later found to disproportionately harm members of a protected group. This individual may be guilty of a fair housing violation under the concept of disparate: - Answer- impact An appraiser does not want to provide subjective statements in their appraisal reports, so they research the U.S. Census Bureau for demographic information. They then include in each appraisal report, a page with a printout of information from the Census Bureau, which includes the racial and ethnic makeup of the market area. Since the information came from the Census Bureau, which is part of the federal government, may the appraiser use or rely on this data in valuing the subject property for a federally regulated lending transaction? - Answer- No, in most instances, an appraiser is prohibited from using or relying on this information about protected characteristics 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? - Answer- 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? - Answer- Yes, because state laws may establish additional protected classes 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? - Answer- Yes, there are circumstances where USPAP allows the appraiser to use and rely on the personal characteristics of individuals In valuing property, USPAP prohibits an appraiser from basing an opinion of value on the premise that homogeneity of ___________ of a geographic area is relevant for the appraisal. - Answer- Inhabitants 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: - Answer- pretext 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? - Answer- The appraiser may be using crime statistics as a pretext for race. Regarding familial status, the Fair Housing Act contains a specific exception related to: - Answer- housing for older persons 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? - Answer- If use or reliance on the characteristic is expressly permitted in the law 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 ________________. - Answer- Whether use or reliance on the characteristic is necessary for credible assignment results 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? - Answer- The statement contains potential code words that could be evidence of discrimination