Which federal laws does the USPAP Nondiscrimination section name as antidiscrimination laws an appraiser must not violate or contribute to violating?
Correct Answer
A) The Fair Housing Act, ECOA and the Civil Rights Act of 1866
The Nondiscrimination section names the Fair Housing Act (FHAct), the Equal Credit Opportunity Act (ECOA) and the Civil Rights Act of 1866. The other statutes govern lending disclosures, bank regulation and other matters.
Why This Is the Correct Answer
Option A is correct because the Nondiscrimination section names the Fair Housing Act (FHAct), the Equal Credit Opportunity Act (ECOA) and the Civil Rights Act of 1866. These are the antidiscrimination laws an appraiser must not violate or contribute to violating. Each addresses discrimination in housing, credit or property rights.
Why the Other Options Are Wrong
Option B: The Truth in Lending Act, RESPA and the Dodd-Frank Act
Option B lists the Truth in Lending Act, RESPA and the Dodd-Frank Act, which deal mainly with lending disclosures, settlement procedures and financial reform. They are not the antidiscrimination laws named in the USPAP Nondiscrimination section.
Option C: FIRREA, the Bank Secrecy Act and the Fair Credit Reporting Act
Option C lists FIRREA, the Bank Secrecy Act and the Fair Credit Reporting Act, which concern bank and appraisal regulation, anti-money-laundering reporting and consumer credit reports. None of them is among the antidiscrimination laws USPAP names.
Option D: The Americans with Disabilities Act and the Clean Water Act
Option D lists the Americans with Disabilities Act and the Clean Water Act. The Clean Water Act is an environmental law, and neither statute is among the three laws named in the USPAP Nondiscrimination section.
Home, Loan, Property Rights
Link each named law to an area an appraisal touches: the home (Fair Housing Act), the loan (ECOA) and property rights (Civil Rights Act of 1866).
How to use: Use this when asked which laws the USPAP Nondiscrimination section names, and eliminate lists containing disclosure or banking statutes.
Exam Tip
Pick the list in which every statute is an antidiscrimination law. Disclosure and bank-regulation statutes are common distractors.
Common Mistakes to Avoid
- -Choosing lending-disclosure laws such as TILA or RESPA because they relate to mortgages
- -Assuming FIRREA is an antidiscrimination law because it is central to appraisal regulation
- -Forgetting that the Civil Rights Act of 1866 is one of the named laws
Concept Deep Dive
Analysis
This question tests whether you can recall the specific federal antidiscrimination statutes named in the Nondiscrimination section of the USPAP Ethics Rule. The key is to separate laws that prohibit discrimination in housing and credit from laws that govern lending disclosures, bank regulation or unrelated subjects. Only one option lists statutes that are all antidiscrimination laws.
Background Knowledge
The USPAP Ethics Rule includes a Nondiscrimination section requiring appraisers not to violate, or contribute to a violation of, applicable antidiscrimination laws. It names the Fair Housing Act, the Equal Credit Opportunity Act and the Civil Rights Act of 1866. These laws protect against discrimination in housing transactions, credit decisions and property rights.
Real-World Application
A reviewer flags an appraiser's draft neighborhood description because it comments on the area's demographic makeup. The appraiser removes the comments, recognizing they could contribute to a violation of the Fair Housing Act and ECOA, which USPAP names in its Nondiscrimination section. The revised report describes the market using physical and economic factors instead.
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?
An appraiser accepts an assignment involving a property type the appraiser has valued once before, years ago. Competency requires:
A Certified General appraiser is asked to value a specialized industrial property for the first time. The appraiser knows a competency gap exists before agreeing to the assignment. What is required if the appraiser proceeds?
Under 2024 USPAP Standard 1, which listed assignment element must be identified in developing a real property appraisal?
An appraiser provided an appraisal of the same property for another client 18 months ago. No confidentiality obligation prevents disclosing the fact of that service. Before agreeing to a new assignment, the appraiser must:
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?
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
Related Tools
Previous Question
As of the effective date, the appraiser knows contamination remains and remediation has not occurred. For an appropriate analysis, the property is valued as if remediation were complete on that same date. Which condition is used?
Next Question
Under SR 1-2(h), what must an appraiser determine when developing a real-property appraisal?