Question

Ty receives a single-family appraisal request from a small local bank which does not sell loans on the secondary mortgage market. Which appraisal reporting format is this client most likely to request?

a. A form created by Fannie Mae
b. A form created by his state appraisal board
c. A form created by the Appraisal Standards Board (ASB)
d. A narrative-type report

Answer 1

Ty is most likely to use a narrative-type report for the appraisal request from the local bank since the bank does not sell loans on the secondary mortgage market and the narrative report can be customized for the bank's requirements.

Step-by-step explanation:

When Ty receives an appraisal request from a small local bank that does not sell loans on the secondary mortgage market, the bank is most likely to request a narrative-type report for the single-family appraisal. This type of report is customizable and can be tailored to the specific requirements of the bank. Option 'a' would be incorrect because Fannie Mae forms are generally used when a loan is intended to be sold on the secondary market. Option 'b' would also be unlikely as state appraisal boards do not typically create reporting forms. Option 'c' is incorrect because forms created by the Appraisal Standards Board (ASB) would be more relevant for ensuring compliance with the Uniform Standards of Professional Appraisal Practice (USPAP) rather than dictating appraisal reporting formats for specific clients. Therefore, the narrative appraisal report is the appropriate choice to meet this local bank's needs.