Certified Residential Appraiser Practice Exam

Which federal agency is primarily involved in regulating appraisers?

1. Fannie Mae

2. Federal Housing Administration

3. Appraisal Subcommittee

4. Department of Housing and Urban Development

The correct answer is: Appraisal Subcommittee

The Appraisal Subcommittee is the primary federal agency involved in regulating appraisers. This agency was established to oversee the real estate appraisal process as part of a broader effort to ensure the integrity and independence of appraisals in federal financial institutions. The Appraisal Subcommittee plays a critical role in implementing regulations that ensure appraisers meet requisite qualifications, adhere to standards, and maintain ethical practices. The Appraisal Subcommittee monitors the activities of State Appraisal Regulatory Agencies to ensure compliance with federal regulations and standards. Its responsibilities include maintaining a national registry of appraisers, overseeing the appraisal process, and ensuring that each state has appropriate licensing and certification requirements for appraisers. This regulatory structure is vital for the stability of the real estate market and the protection of consumers who depend on accurate and unbiased appraisals. While other agencies like Fannie Mae and the Federal Housing Administration influence the appraisal process, particularly in relation to mortgage lending and housing programs, they do not primarily regulate appraisers in the same way that the Appraisal Subcommittee does. The Department of Housing and Urban Development also addresses broader housing policy issues, but it does not serve as the direct regulatory authority for appraisers. Therefore, the focus on the Appraisal Subcommittee as the primary agency is accurate and