The interagency quality control standards for automated valuation models apply directly to which parties?
Correct Answer
C) Mortgage originators and secondary market issuers
Why this is correct: The Interagency Appraisal and Evaluation Guidelines include quality control standards for Automated Valuation Models (AVMs) that apply directly to federally regulated financial institutions, such as mortgage originators and secondary market issuers (e.g., Fannie Mae, Freddie Mac). These entities must have policies for AVM use. Why the other choices are wrong: 'Individual appraisers using models in assignments' are governed by USPAP, not directly by these interagency standards. 'State appraiser regulatory agencies and their boards' enforce licensing, not these AVM standards. 'Property data collectors gathering field information' are not the primary addressees of these standards. Exam tip: Interagency AVM standards target the institutions using the models for lending decisions, not the appraisers themselves.
Why This Is the Correct Answer
Why this is correct: The Interagency Appraisal and Evaluation Guidelines include quality control standards for Automated Valuation Models (AVMs) that apply directly to federally regulated financial institutions, such as mortgage originators and secondary market issuers (e.g., Fannie Mae, Freddie Mac). These entities must have policies for AVM use. Why the other choices are wrong: 'Individual appraisers using models in assignments' are governed by USPAP, not directly by these interagency standards. 'State appraiser regulatory agencies and their boards' enforce licensing, not these AVM standards. 'Property data collectors gathering field information' are not the primary addressees of these standards. Exam tip: Interagency AVM standards target the institutions using the models for lending decisions, not the appraisers themselves.
More Emerging Methods Questions
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A collector's photographs show a condition the appraiser believes needs specialist assessment. What is the appropriate step?
What responsibility does an appraiser retain for an error originating in a third-party database?
Under current USPAP guidance, what is the output of an automated valuation model before an appraiser analyzes it?
Which assignment type still requires the appraiser to develop an opinion of value?
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Why is the date a data extract was pulled worth recording in the workfile?
A desktop appraisal is best described as an assignment completed how?
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