Property Valuation
When a Montana appraiser performs an appraisal for a federally regulated transaction (FDIC-insured lender), they must adhere to:
AOnly Montana state appraisal standards
BUSPAP (Uniform Standards of Professional Appraisal Practice) as adopted by Montana and federal requirements✓ Correct
CStandards set by the National Association of Realtors
DNo formal standards if the property value is under $500,000
Explanation
Montana licensed and certified appraisers must comply with USPAP (Uniform Standards of Professional Appraisal Practice) for federally related transactions involving FDIC-insured lenders. Montana has adopted USPAP as the standard for all licensed appraisal activity.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
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