After a mortgage appraisal is delivered, the lender asks appraiser Priya Shah to issue a corrected copy showing the borrower's full legal name. Priya determines the correction does not affect the problem to be solved or the scope of work. Under current USPAP guidance, which statement is best?
Correct Answer
A) The corrected borrower name is typically a client condition, not a required assignment element
Recent Appraisal Foundation guidance explains that, in many mortgage assignments, the borrower's identity is not a required USPAP assignment element. If the borrower name was included because the client wanted it, that is generally a client condition, so a correction may be possible as long as the change is not misleading and the report date is updated appropriately.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
More Valuation Market Analysis Questions
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A parcel is in a desirable retail corridor and buyers want it, but an unresolved title defect and missing legal access make it hard to close. Which element of value is most directly impaired?
When appraising co-op apartments in New York, all of the following factors must be considered due to their unique ownership structure EXCEPT:
A first-time buyer in New York City asks their agent about the difference between owning a co-op versus a condo. What is the fundamental ownership difference the agent should explain?
An agent in Staten Island is explaining maintenance fees to a co-op buyer. The buyer asks what expenses are typically included in a co-op maintenance fee that differ from condo common charges. What should the agent explain?
- → An appraiser is using the income approach to value a 12-unit rental building in Brooklyn. The building generates $180,000 in annual gross rental income. Operating expenses total $54,000 annually. The appraiser determines that a 7.5% capitalization rate is appropriate for this type of property in this location. What is the indicated value using the income approach?
- → An example of functional obsolescence is:
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- → The final appraisal step of weighing different approaches is called:
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In appraisal terminology, what is the intended use of an appraisal report?
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A trainee inspects a one-unit property on July 8, verifies market data, and drafts major portions of the report while working under a state-certified supervisory appraiser. The supervisory appraiser reviews the work, signs the certification, and discloses the trainee's tasks in the report. If state law permits this arrangement, which statement is most accurate?