Real Estate Appraisal Regulations

5問 • 3ヶ月前

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1. Greg Smith, a real estate lending officer at XYZ Bank, is planning to make a $500,000 loan to Milton Womack, a good customer, to purchase a piece of commercial real estate from a local real estate broker. The loan will have a loan-to-value ratio of 75 percent. Mr. Womack has offered Greg an appraisal given to him by the seller of the property. The appraisal is very complete and is approximately three months old. Greg would like to waive the normal appraisal requirement and simply have the original appraiser update the seller’s appraisal because this would save Mr. Womack the money a new appraisal would cost. Can Greg legally use the updated appraisal? Why or why not? a. Yes. Greg may use the appraisal provided it goes through the bank’s established appraisal review process. b. No. Greg may not use the appraisal because the appraiser was not engaged by another financial institution. c. No. Greg may not use the appraisal because it is too old. d. Yes. Greg may use the appraisal because it was done so completely, provided he knows the appraiser and has confidence in his work.

2. In which of the following cases would ABC Bank have to obtain an appraisal performed by a state-certified appraiser? a. On a $200,000 loan made by Mr. and Mrs. Littlefield to purchase their home, which will be secured by their home b. On a $75,000 loan to be secured by a two-story commercial office building c. On a $150,000 working capital loan fully secured by a bank certificate of deposit, on which the loan officer has also taken a lien on a vacant lot owned by the borrower as an abundance of caution d. On a $450,000 loan to Mr. Burch secured by his life estate in his home. The home was left to Mr. Burch on the death of his father. The father’s will states that the home will belong to Mr. Burch during his life but will revert to Mr. Burch’s son on his death.

3. First National Bank would like to establish a policy regarding the evaluation of real estate-related transactions (e.g., mortgage loans) secured by a 1-to 4-family residential property that are not subject to the appraisal requirement. Which of the following is acceptable in this policy? a. All loans under $400,000 secured by a 1-4 family residential property must have an evaluation in the file. b. All loans that do not require an appraisal by a state-certified appraiser must have an evaluation. c. The evaluations generally will be performed by the loan officer responsible for the transaction. d. Evaluations may be performed by any loan officer in either commercial or consumer lending as well as any credit analyst.

4. If a bank uses a staff appraiser to appraise property that secures loans at the bank, in which case would the appraiser most likely NOT be considered to be independent? a. The appraiser is an employee of the bank’s affiliated holding company b. The appraiser is an employee of the bank’s affiliated financial institution c. The appraiser is an employee in the commercial loan department d. The appraiser is employed by the bank but reports to the audit department

5. Value Inc. is a federally regulated AMC and a subsidiary owned and controlled by ABC bank, a federally insured depository institution. Value Inc. is subject to all of the following requirements EXCEPT: a. The company must register with the state appraiser and certifying licensing agency in all states in which it operates b. The company must maintain compliance with valuation independence standards set forth in the Truth in Lending Act c. The company must require that all appraisals comply with USPAP d. The company must verify that only state-certified or state-licensed appraisers are used for federally related transactions

Truth in Lending

ユーザ名非公開 · 36問 · 4ヶ月前

Truth in Lending