A state appraiser regulatory agency's primary function includes:
Correct Answer
B) Licensing and certifying appraisers under state authority
State appraiser regulatory programs issue credentials and oversee compliance and enforcement within their jurisdiction. The ASC monitors these programs for Title XI compliance, and the ASB promulgates USPAP. A state may house several functions in one agency, so agency organization should not be confused with the distinct credentialing, standards, assessment, and brokerage functions.
Why This Is the Correct Answer
Option B is correct because a state agency is the state appraiser certifying and licensing agency recognized under federal law. It licenses and certifies appraisers under state authority and handles compliance and enforcement in its jurisdiction. The ASC monitors these programs, and the ASB promulgates USPAP.
Why the Other Options Are Wrong
Option A: Issuing national USPAP revisions
Option A, issuing national USPAP revisions, is wrong because the Appraisal Standards Board of The Appraisal Foundation promulgates USPAP, not a state agency.
Option C: Replacing the ASB with a federal appraisal standards board
Option C, replacing the ASB with a federal appraisal standards board, describes no function of a state agency, which has no power to replace a national standards board.
Option D: Setting market values for the properties in the state
Option D, setting market values for the properties in the state, is wrong because value opinions come from appraisers and assessors, not from the licensing agency.
State boards license appraisers
The ASB writes the standards, the AQB sets qualifications, the ASC oversees, and the state board licenses.
How to use: Use this to match each appraisal body with its function.
Exam Tip
When a question asks about state agency functions, look for credentialing and enforcement under state authority.
Common Mistakes to Avoid
- -Believing state boards write USPAP
- -Confusing the state licensing agency with the county assessor
- -Thinking the ASC issues individual credentials
Concept Deep Dive
Analysis
This question tests the function of a state appraiser regulatory agency. The state agency is the state appraiser certifying and licensing agency, which issues credentials and oversees compliance and enforcement within its jurisdiction. Other choices assign tasks belonging to other bodies or to no regulator.
Background Knowledge
Under Title XI, states maintain appraiser certifying and licensing agencies that meet federal minimum requirements. These agencies issue credentials based on AQB minimum criteria, investigate complaints, and discipline appraisers. The ASC oversees the effectiveness of these state programs.
Real-World Application
A newly qualified appraiser applies to her state appraisal board after passing the national exam and completing experience hours. The board reviews her application and issues her certified residential credential.
More USPAP Questions
An appraiser signs, finalizes and electronically transmits a residential appraisal report to the client on March 15. Its value opinion has a March 1 effective date. The client does not open the transmitted report until March 20. What is the report date?
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According to USPAP Standard 2, which of the following is NOT a required element in an appraisal report?
A client asks an appraiser to raise a completed report’s value conclusion by $15,000 solely to match the contract price, without providing new evidence. What should the appraiser do?
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