Property Valuation
A Virginia appraiser is asked to appraise a property for 'mortgage lending purposes.' Under FIRREA and USPAP, the appraiser must:
AUse only the cost approach
BBe state licensed or certified and follow USPAP and the Interagency Appraisal Guidelines✓ Correct
CBe approved by VREB only
DUse only the income approach for investment properties
Explanation
FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act) requires that real estate appraisals for federally regulated lenders be performed by state-licensed or state-certified appraisers following USPAP.
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