Question

What is a reason why residential appraisers are often "form-focused"?

a. USPAP requires the use of forms
b. Most state appraisal boards mandate the use of forms
c. Forms have been standardized by Fannie Mae and Freddie Mac
d. Use of a form means the report is automatically USPAP-compliant

Answer 1

Residential appraisers use standardized forms because they have been adopted by Fannie Mae and Freddie Mac to ensure consistency in appraisals used for mortgage lending, not because USPAP mandates them.

Step-by-step explanation:

Residential appraisers are often 'form-focused' because forms have been standardized by Fannie Mae and Freddie Mac. These standardized forms ensure that appraisals are consistent and meet certain guidelines set forth for mortgage lending purposes. While the Uniform Standards of Professional Appraisal Practice (USPAP) does not require the use of specific forms, the adoption of standardized forms by major entities like Fannie Mae and Freddie Mac has effectively made them a common practice in residential property appraisal.