An AMC placed 2,500 appraisal orders in a year. What additional fact is needed to determine whether it meets the federal AMC panel-size threshold?
Correct Answer
D) How many credentialed appraisers are on its panel and in which states they work
Annual appraisal orders alone do not determine federal AMC threshold status. For covered transactions, ask whether the AMC oversees more than 15 credentialed appraisers in one state or 25 or more in two or more states. Then determine whether it is federally regulated or subject to state registration.
Why This Is the Correct Answer
Option D is correct because the federal threshold depends on whether the AMC oversees more than 15 credentialed appraisers in one state or 25 or more in two or more states. Knowing the panel size and the states where those appraisers work is the missing fact. After that, the AMC must determine whether it is federally regulated or subject to state registration.
Why the Other Options Are Wrong
Option A: Whether its main office has a federal mailing address
Option A asks whether the main office has a federal mailing address. Office address has no bearing on the panel-size threshold, which counts appraisers by state.
Option B: Whether its annual order count exceeds 250 orders in each state where it operates
Option B asks whether the annual order count exceeds 250 orders in each state. The threshold is based on panel size, not order counts, and the 250-order figure does not follow from the definition.
Option C: Whether each appraiser completed 2,500 appraisals
Option C asks whether each appraiser completed 2,500 appraisals. Per-appraiser output is not part of the test, and the 2,500 figure is simply the AMC's total orders from the stem, not a threshold.
Count appraisers, not orders
The AMC threshold counts panel appraisers by state; order totals do not decide it.
How to use: Use this when a stem gives order volume and asks what else is needed.
Exam Tip
When a stem supplies an irrelevant number like total orders, look for the option that asks for panel size and state distribution.
Common Mistakes to Avoid
- -Using order volume to decide AMC status
- -Ignoring the state distribution of panel appraisers
- -Assuming meeting the threshold settles federal versus state regulation
Concept Deep Dive
Analysis
This question tests whether you know what drives the federal AMC panel-size threshold. Order volume, such as 2,500 orders a year, does not determine threshold status. You need the number of credentialed appraisers on the panel and the states they work in, because the threshold is more than 15 in one state or 25 or more in two or more states.
Background Knowledge
The federal AMC definition focuses on the size and geographic spread of the appraiser panel an entity oversees within a 12-month period. Order volume may show business size but does not answer the panel-size question. Once the threshold is met, regulatory status as federally regulated or state-registered still has to be determined.
Real-World Application
A startup AMC reports 2,500 orders in its first year but uses only 12 appraisers, all in one state. Despite the order volume, its panel does not exceed 15 in one state, so order volume alone did not answer the threshold question.
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?
The Dodd-Frank Act's appraisal provisions primarily focus on:
According to AQB criteria, what is the minimum number of classroom hours of qualifying education required for a Certified Residential appraiser?
In a Fannie Mae appraisal, which item does not belong in the appraiser's site analysis?
After delivering a $485,000 URAR, an appraiser discovers a previously undisclosed $15,000 seller repair credit on a comparable sale that may materially change the analysis. What is the most appropriate response?
The special appraisal requirements in Regulation Z §1026.35(c), adopted under Dodd-Frank, concern which covered mortgage category?
A state appraiser regulatory agency is reviewing an appraiser's continuing education compliance. The appraiser completed 28 hours of continuing education in the current two-year period, including 5 hours of USPAP update training. Does this meet AQB requirements?
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?
A comparable-sale grid includes a $5,000 bathroom adjustment. Which treatment best supports clear appraisal reporting?
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam