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Flashcards in Appraisal Deck (16)
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1
Q

Appraisals by a state certified or licensed appraiser are required on:

A

all real estate related financial transactions (unless exempted)

2
Q

What is the transaction value limit for appraisal rules?

A

$250,000 or less (still need an evaluation)

3
Q

T or F

An appraisals is not required when the lien on real property has been taken as collateral solely out of an abundance of caution.

A

TRUE

4
Q

An appraisal is not required on existing extensions of credit when:

A

* no new monies were advanced OR

* any monies advanced do not threaten the bank’s real estate collateral protection (may still need an evaluation)

5
Q

T or F

Loans that are business purpose for $1 million or less and are not dependent on the sale of real estate or rental income derived from real estate as the primary collateral do not require an appraisal.

A

TRUE

(still need an evaluation)

6
Q

Appraisals can only be performed by state certified appraiser if:

A

* the loan is for $1 million or more

* the loan is $250,000 or more and not secured by 1-4 family residential real property

* the loan is $250,000 or more and is a complex transaction secured by residential real property (still need an evaluation)

7
Q

All required appraisal reports must conform to the:

A

Uniform Standards of Professional Appraisal Practice (USPAP) unless principles of save and sound banking require compliance with stricter standards

8
Q

Appraisals must be based on market value, which means:

A

the most probable price that the property should bring in a fair sale in a competitive and open market, with the buyer and seller acting prudently and knowledgeably and with no undue stimulus on the price

9
Q

Appraisals must be written and contain:

A

sufficient information and analysis to support the bank’s dictions to make the loan

10
Q

Appraisals must document the value of the real estate in its existing condition and include appropriate:

A

analysis, application, and reporting of deductions and discounts

11
Q

The bank may staff appraisers but they must be:

A

independent of the lending, investment, and collection functions

12
Q

The bank may use an appraisal prepared by an appraiser directly engaged by another institution if:

A

* the appraiser has no direct or indirect interest in the property or transaction AND

* the bank determines that the appraisal conforms to the regulation

13
Q

Banks, staff appraisers, and fee appraisers are subject to ________________ for violation of the appraisal regulation.

A

removal, cease and desist orders, and/or civil money penalties

14
Q

In institutions board of directors or its designated committee is responsible for adoption a program to comply with the appraisal regulations that provides for:

A

appraiser independence, timely receipts of accurate appraisals that support the credit, appraisal review, selection criteria for appraisers, and policies and procedures that ensure that appraisals comply with all of the guidelines.

15
Q

T or F

If an AMC is federally regulated and a subsidiary owned and controlled by an insured depository institution it is not subject to the requirement to register with a State.

A

TRUE

16
Q

How do banks meet the requirement that it must hire and select qualified appraisers?

A

maintaining a list of approved appraisers