Certified Residential Appraiser Practice Exam

Who developed uniform rules for mortgage underwriting in the 1970s?

1. AQB

2. USPAP

3. FHA

4. TAF

The correct answer is: AQB

The correct answer to who developed uniform rules for mortgage underwriting in the 1970s is the FHA (Federal Housing Administration). The FHA plays a significant role in establishing guidelines and standards for accessing mortgage insurance and underwriting practices, especially during that era. During the 1970s, the FHA introduced several initiatives aimed at improving the mortgage market and making homeownership more accessible. They provided uniform rules and guidelines that helped regulate how lenders underwrite residential loans, ensuring that there was consistency and fairness across different lending institutions. The AQB (Appraiser Qualifications Board) and TAF (The Appraisal Foundation) are more focused on establishing qualifications and standards in the field of appraisal rather than underwriting rules for mortgages. USPAP (Uniform Standards of Professional Appraisal Practice) refers to the standards for appraisals, not specifically for mortgage underwriting. In summary, the FHA's contributions were pivotal in forming the uniform underwriting rules that shaped the mortgage industry during the 1970s.