Certified Residential Appraiser Practice Exam

Which of the following assists in ensuring appraisal competency in federally-related transactions?

1. The Appraisal Foundation

2. The FXC

3. The ASC

4. The AQB

The correct answer is: The ASC

The correct answer, which pertains to ensuring appraisal competency in federally-related transactions, is tied to the role of the Appraisal Standards Board (ASB), particularly the Appraisal Qualifications Board (AQB). The AQB sets the minimum qualifications for individuals to become licensed or certified appraisers and thus plays a crucial role in maintaining appraisal competency universally. The AQB develops and implements standards that all state appraisal regulatory agencies must follow to ensure that appraisers are sufficiently trained and qualified to carry out their duties. This includes outlining education requirements, experience criteria, and examination processes that help maintain a level of competency among appraisers. In the context of federally-related transactions, where accurate valuations are vital for lending and regulatory compliance, the AQB’s standards directly contribute to ensuring that all appraisals conducted meet the necessary qualifications and professional standards. The Appraisal Foundation, while involved in the overall umbrella of appraisal standards, encompasses more than just competency and includes numerous functions such as promoting high standards of appraisal practice. The FXC (Federal Financial Institutions Examination Council) focuses more broadly on financial institution regulation and oversight, while the ASC (Appraisal Subcommittee) serves to monitor state appraisal regulatory agencies but does not set the qualification standards directly. Therefore, the AQB's role in