A reviewer prepares a written appraisal-review report under USPAP Standard 4. What must it include?
Correct Answer
D) A signed certification with the applicable required review statements
A written appraisal-review report must include the required signed certification under SR 4-3. The certification must accurately reflect the reviewer’s actual work and applicable statements. A desk location does not by itself make the service merely administrative or exempt it from appraisal-review obligations. Oral review reporting has its own applicable provisions and workfile requirements.
Why This Is the Correct Answer
Option D is correct because SR 4-3 states that a signed certification is an integral part of the appraisal review report. Any reviewer who signs it accepts responsibility for all elements of the certification, the assignment results, and the report's contents. The certification must include the applicable required review statements and reflect the reviewer's actual work.
Why the Other Options Are Wrong
Option A: An underwriting approval from the lender in place of a review conclusion
Option A, an underwriting approval from the lender in place of a review conclusion, is wrong because a lender's credit decision is not a review conclusion and cannot replace the reviewer's required content.
Option B: Only the original appraiser’s fee and turnaround time
Option B, only the original appraiser's fee and turnaround time, is wrong because those details do not address the quality of the work under review and omit required content, including the certification.
Option C: No certification if the review was completed at a desk
Option C, no certification if the review was completed at a desk, is wrong because a desk review is still an appraisal review and its written report requires a signed certification.
Review report needs signed certification
Like an appraisal report, a written review report carries a signed certification, wherever the review was done.
How to use: Use this when a choice claims a desk review or a review label removes the certification.
Exam Tip
Location of the review, desk or field, does not change the certification requirement.
Common Mistakes to Avoid
- -Believing desk reviews need no certification
- -Confusing underwriting approval with a review conclusion
- -Treating a review as administrative and outside Standards 3 and 4
Concept Deep Dive
Analysis
This question tests the Standard 4 requirement for a written appraisal review report. SR 4-3 makes a signed certification an integral part of the review report. Where the review was performed, such as at a desk, does not remove the certification.
Background Knowledge
An appraisal review develops and communicates an opinion about the quality of another appraiser's work. Standard 3 governs development and Standard 4 governs reporting, including the SR 4-3 certification. Field and desk reviews are both appraisal reviews when they meet the definition.
Real-World Application
A lender's staff reviewer completes a desk review of a residential appraisal and writes a review report. She includes a signed certification with the required review statements, accepting responsibility for her conclusions.
More USPAP Questions
Under USPAP, what are assignment results?
The certification required by Standards Rule 2-3 must be signed by:
Under 2024 USPAP, which statement correctly combines the requirements for an oral real property appraisal report and its workfile?
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Under 2024 USPAP Standard 1, which listed assignment element must be identified in developing a real property appraisal?
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According to USPAP, what is the primary purpose of the Ethics Rule?
An appraiser is asked to determine 'fair market value' for an assignment. According to USPAP, the appraiser should:
Which list gives the sections of the 2024 USPAP Ethics Rule?
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