An appraiser adopts and reports an AVM value as their own opinion. How is that service characterized, without assuming the underlying work was adequate?
Correct Answer
D) An appraisal, for which the appraiser is responsible
Reporting the value as the appraiser’s own opinion constitutes an appraisal; an AVM does not remove responsibility. Mere agreement with its output does not demonstrate adequate development or compliance. A lending label such as evaluation does not automatically make an opinion non-appraisal.
Why This Is the Correct Answer
Reporting the value as the appraiser’s own opinion constitutes an appraisal; an AVM does not remove responsibility. Mere agreement with its output does not demonstrate adequate development or compliance. A lending label such as evaluation does not automatically make an opinion non-appraisal.
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For a loan exempt from the appraisal requirement, a bank proposes to use a broker price opinion prepared by an experienced local broker as its evaluation. Under the Interagency Guidelines, may the bank do so?