Which statement accurately describes federal appraisal-independence and AVM quality-control rulemaking authority?
Correct Answer
B) Statute assigns it, including joint agency rules; not the CFPB alone
TILA section 129E provides for specified agencies to issue appraisal-independence rules jointly, and the Federal Reserve issued the 2010 interim final rule. The 2024 AVM quality-control rule was issued jointly by six agencies including the CFPB, FHFA, and banking regulators. The CFPB has important consumer-finance authority, but that does not make all appraisal-independence and quality-control rulemaking exclusively its function.
Why This Is the Correct Answer
Option B is correct because statute assigns the authority, including joint rulemaking, rather than giving it to the CFPB alone. 15 U.S.C. 1639e lets agencies including the FHFA and the Bureau jointly issue appraisal-independence rules, and 12 U.S.C. 3354 directs the Board, OCC, FDIC, NCUA Board, FHFA and the Bureau to promulgate AVM quality-control regulations.
Why the Other Options Are Wrong
Option A: The OCC issues them by itself, with no other agency taking part
Option A, saying the OCC issues these rules by itself with no other agency taking part, is wrong because the statutes call for multiple agencies acting jointly.
Option C: The FHFA cannot take part in any AVM quality-control rulemaking
Option C, saying the FHFA cannot take part in any AVM quality-control rulemaking, is wrong because 12 U.S.C. 3354 names the FHFA among the agencies that promulgate those regulations.
Option D: The Federal Reserve has had no role in appraisal-independence rules
Option D, saying the Federal Reserve has had no role in appraisal-independence rules, is wrong because the Federal Reserve issued the 2010 interim final rule on appraisal independence and is among the agencies named for AVM rulemaking.
Many agencies, one rule
For appraisal independence and AVM quality control, think of several agencies sitting at one table to write a joint rule.
How to use: Use the one-table image to reject answers that give the authority to a single agency or shut a named agency out.
Exam Tip
Be wary of choices that claim one agency acts by itself or that a specific agency has no role; the statutes describe joint authority.
Common Mistakes to Avoid
- -Assuming the CFPB alone writes all appraisal-independence rules
- -Believing the FHFA has no role in AVM quality-control rulemaking
- -Forgetting the Federal Reserve's 2010 interim final rule
Concept Deep Dive
Analysis
This question tests who has federal rulemaking authority for appraisal independence and AVM quality control. Statutes assign this authority to several agencies, including through joint rulemaking. Options that say a single agency acts alone, or that exclude a named agency, conflict with the statutes.
Background Knowledge
Appraisal independence requirements under TILA section 129E and AVM quality-control standards under 12 U.S.C. 3354 come from statutes that spread rulemaking among federal financial regulators. The 2024 AVM quality-control rule was issued jointly by six agencies, including the CFPB, FHFA and the banking regulators.
Real-World Application
A bank compliance officer reviewing AVM policies checks the 2024 interagency AVM quality-control rule. She notes it was issued jointly by six agencies, so the same standards apply across the regulated institutions those agencies supervise.
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