A lender emails: 'We need at least $450,000 to make this loan work — can you take the assignment?' Accepting on that basis is:
Correct Answer
B) Prohibited — accepting an assignment conditioned on a predetermined result
Why this is correct: The governing concept is USPAP's prohibition against accepting an assignment conditioned on a predetermined value. The lender's request for 'at least $450,000' to 'make the loan work' is a condition for engagement, not just data sharing. Accepting on that basis compromises impartiality from the start, which is the violation. Why the other choices are wrong: Accepting the assignment 'as long as the appraiser stays open-minded' is wrong because the condition itself destroys the required impartiality. Accepting because 'lenders are allowed to share the target loan amount' is wrong; sharing a target loan amount as a condition for getting the assignment is prohibited, unlike sharing a contract price as a data point. The action is 'Prohibited only if the final report actually hits the requested number' is wrong because the violation occurs upon accepting the conditioned assignment, regardless of the final opinion of value. Exam tip: The ethical breach happens at the moment of accepting an assignment with a value condition, not when delivering the report.
Why This Is the Correct Answer
Why this is correct: The governing concept is USPAP's prohibition against accepting an assignment conditioned on a predetermined value. The lender's request for 'at least $450,000' to 'make the loan work' is a condition for engagement, not just data sharing. Accepting on that basis compromises impartiality from the start, which is the violation. Why the other choices are wrong: Accepting the assignment 'as long as the appraiser stays open-minded' is wrong because the condition itself destroys the required impartiality. Accepting because 'lenders are allowed to share the target loan amount' is wrong; sharing a target loan amount as a condition for getting the assignment is prohibited, unlike sharing a contract price as a data point. The action is 'Prohibited only if the final report actually hits the requested number' is wrong because the violation occurs upon accepting the conditioned assignment, regardless of the final opinion of value. Exam tip: The ethical breach happens at the moment of accepting an assignment with a value condition, not when delivering the report.
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