Uw Training - Appraisal Review Quiz
- 1.The Underwriter is not responsible for reviewing the appraisal report as long as CoreLogic issues a “Pass” rating.
- A.
True
- B.
False
- 2.Underwriting the Borrower’s credit worthiness is more important than reviewing the appraisal report.
- A.
True
- B.
False
- 3.The reason SPM utilizes Appraisal Management Centers (AMCs) is to ensure the Appraiser Independence Requirements (AIR) compliance regulations are being met.
- A.
True
- B.
False
- 4.Appraisers are no longer able to rate the property’s quality against the standards for that neighborhood.
- A.
True
- B.
False
- 5.USPAP compliance is optional for federal, state and local agencies, appraisal services and appraisal trade associations.
- A.
True
- B.
False
- 6.An appraisal report needs to state the property’s value based on a detailed physical description of the property, its surroundings and the methods use to estimate the property value.
- A.
True
- B.
False
- 7.The appraisal report must be an impartial opinion that states the market value on the exact date of the inspection.
- A.
True
- B.
False
- 8.The DOMs (Days on the Market) is only required for purchase transactions.
- A.
True
- B.
False
- 9.Fair Market Value (FMV) is the price someone is willing to pay.
- A.
True
- B.
False
- 10.The appraiser doesn’t need to use the USPS postal address for the subject property as long as he/she can rationalize the reason for doing such.
- A.
True
- B.
False
- 11.Rural properties do not significantly increase in value like urban or suburban properties and because the demand is not as great, they are more sensitive to economic down turns or value declines.
- A.
True
- B.
False
- 12.Red Flag issues present in an appraisal report need not be addressed if the LTV is below the product guideline requirement.
- A.
True
- B.
False
- 13.The Sales Comparison Approach is the most commonly used approach to evaluate residential property.
- A.
True
- B.
False
- 14.The “owner of record” section of the appraisal report is an optional field and needs not be completed by the appraiser for refinance transactions.
- A.
True
- B.
False
- 15.Only closed sales can be used for the 3 main comps on an appraisal report.
- A.
True
- B.
False
- 16.When an appraisal report reflects comps with extended DOM's, the Underwriter should: (Please select the best answer)
- A.
Disregard the information because it is not relevant to a refinance transaction
- B.
Refer to and evaluate the appraiser’s comments for the comps’ extended market time
- C.
Disregard the information if the comps photo’s and corresponding adjustments indicate they are inferior properties than the subject property
- D.
All of the Above
- E.
None of the Above
- 17.It is important that the appraiser receives a full and complete copy of the purchase contract because he or she: (Please select the best answer)
- A.
Wants to bring the appraised value in to match the purchase price on the contract since that is the price the buyer is willing to pay
- B.
Is responsible to ensure the Seller of the property matches public records and needs to review the terms of the contract, concessions, financing assistance and the type of sale
- C.
Is responsible to ensure the purchase contract is written up on the correct form with all applicable disclosures attached
- D.
All of the above
- E.
None of the above
- 18.Rural properties may be difficult to comp because: (Please select the best answer)
- A.
Typically the property has a large site
- B.
Distances of comps to subject property are greater than urban or suburban properties, especially when acreage is involved
- C.
Very small towns or sparsely populated areas may not have any recent sales available or properties that are truly similar to subject
- D.
All of the above
- E.
None of the above
- 19.The neighborhood boundary section of the appraisal report is: (Please select the best answer)
- A.
Not important because the comps on page 2 and the appraised value is all the Underwriter needs to review
- B.
Not really needed to because the 1004MC is more accurate and reliable
- C.
Should be typical to its surroundings and the comps used in the appraisal report should be within the same neighborhood as it describes neighborhood characteristics, Housing trends, Price and Age ranges and land uses
- D.
All of the Above
- E.
None of the Above
- 20.When an appraisal indicates very few adjustments in the sales comparison analysis, it indicates: (Please select the best answer)
- A.
That the comps are similar to the subject property
- B.
The subject may be an under-improvement for the neighborhood
- C.
The subject may be an over-improvement for the neighborhood
- D.
The property is not acceptable to lend on
- 21.When an appraiser “brackets” a property means that the appraiser is: (Please select the best answer)
- A.
Documenting identical comps through paired sales analysis
- B.
Using comps with higher as well as lower sales prices than subject property
- C.
Identifying potential Health and Safety issues
- D.
Describing foundation structure
- 22.Examples of functional obsolescence include: (Please select the best answer)
- A.
A house with only 1 bathroom located on a different floor than the bedrooms
- B.
Lack of a master bedroom (E.G. all bedrooms are the same size)
- C.
Tandem or captive bedrooms that can only be accessed through another room without a hallway
- D.
All of the above
- E.
None of the above
- 23.The first three comps on the comparable sales grid must be: (Please select the best answer)
- A.
Current Listings
- B.
Closed Sales
- C.
Pending Sales
- D.
All of the above
- E.
None of the above
- 24.View Adjustments made to the subject property can be described as: (Please select the best answer)
- A.
None
- B.
Typical
- C.
Average
- D.
All of the above
- E.
None of the above
- 25.When appraisal discrepancies are discovered, the UW is expected to: (Please select the best answer)
- A.
Order a Second Appraisal report
- B.
Decline the loan file because this is unacceptable
- C.
Reconcile the discrepancies through the applicable AMC or VA appraiser
- D.
Order a Desk Review
- E.
Order a Field Review
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