Appraisals for federally regulated financial institutions often involve the use of the Jurisdictional Exception Rule. This statement is:

The statement about appraisals for federally regulated financial institutions and the application of the Jurisdictional Exception Rule is indeed false. The Jurisdictional Exception Rule refers to a provision in the Uniform Standards of Professional Appraisal Practice (USPAP) that allows an appraiser to deviate from certain USPAP requirements if, due to certain laws or regulations, compliance with those requirements is not possible.

In the context of appraisals for federally regulated financial institutions, federal regulations typically require compliance with USPAP standards, and the Jurisdictional Exception does not generally apply to these appraisals. Rather, it emphasizes the necessity for appraisers to follow USPAP guidelines in performing work for these institutions to ensure consistency, credibility, and legal compliance across the financial market. Therefore, in this context, the statement inaccurately suggests that the Jurisdictional Exception is commonly involved in appraisals for federally regulated financial institutions. This understanding is crucial for appraisers working within the regulatory framework to adhere strictly to USPAP standards unless a valid jurisdictional exception is established by law.