Which of the following best describes the ASC's primary oversight responsibility?
Correct Answer
A) Monitoring the effectiveness of state appraiser regulatory programs
The ASC monitors state appraiser regulatory programs for compliance with Title XI and performs other statutory oversight and registry functions. State agencies issue appraiser credentials and handle individual enforcement under state law. Program oversight does not make the ASC the direct licensing office, fee setter, or reviewer for every individual assignment.
Why This Is the Correct Answer
Option A is correct because the ASC monitors state appraiser regulatory programs for compliance with Title XI. Federal law gives the ASC authority to impose sanctions against a state agency that fails to have an effective appraiser regulatory program. State agencies, not the ASC, issue credentials and handle individual enforcement.
Why the Other Options Are Wrong
Option B: Setting assignment fees for fee appraisers nationwide
Option B, setting assignment fees for fee appraisers nationwide, is not an ASC function; the ASC oversees state regulatory programs and does not set what appraisers charge.
Option C: Directly issuing the appraiser credentials held in each state
Option C, directly issuing the appraiser credentials held in each state, is wrong because state appraiser regulatory agencies issue credentials under state law.
Option D: Performing the property appraisal reviews for federal agencies
Option D, performing the property appraisal reviews for federal agencies, describes assignment-level review work, which is outside the ASC's program-oversight role.
ASC watches the watchers
States watch appraisers, and the ASC watches the states.
How to use: Use this when asked whether a task belongs to the ASC or to a state board.
Exam Tip
ASC answers involve monitoring state programs or maintaining registries, not licensing individuals or reviewing specific reports.
Common Mistakes to Avoid
- -Believing the ASC issues appraiser licenses
- -Thinking the ASC investigates every individual appraisal complaint
- -Confusing the ASC with The Appraisal Foundation's boards
Concept Deep Dive
Analysis
This question tests the role of the Appraisal Subcommittee under Title XI. The ASC's central oversight task is monitoring state appraiser regulatory programs, with authority to sanction a state agency that lacks an effective program. It does not license appraisers, set fees, or review individual appraisals for federal agencies.
Background Knowledge
Title XI of FIRREA created the Appraisal Subcommittee within the Federal Financial Institutions Examination Council. The ASC monitors state programs, maintains national registries, and can act against a state agency whose program is ineffective. Day-to-day licensing and discipline of individual appraisers stays with the states.
Real-World Application
During a periodic review, the ASC finds that a state board has a large backlog of unresolved complaints. The ASC works with the state agency on corrective steps, while the state board remains responsible for investigating and deciding the individual cases.
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