A borrower asks their loan originator, "What should I tell the appraiser when they visit?" The MLO responds, "Just be honest about the property condition and answer their questions." This response is:
Correct Answer
B) Appropriate guidance on proper conduct
Advising borrowers to be honest and answer questions truthfully is appropriate guidance that does not constitute coaching or appraisal influence. The SAFE Act prohibits influencing appraisers, not providing general guidance about proper conduct during appraisals.
Why This Is the Correct Answer
Advising borrowers to be honest and answer questions truthfully is appropriate guidance that does not constitute coaching or appraisal influence. The SAFE Act prohibits influencing appraisers, not providing general guidance about proper conduct during appraisals.
More UST Questions
If a state regulatory authority finds violations during an examination, what factors typically influence the severity of enforcement action?
Under the SAFE Act, an individual who works for a federally chartered bank and takes mortgage applications must:
An MLO under investigation claims that certain requested documents are protected by attorney-client privilege because they were prepared in consultation with legal counsel. How should the state regulator respond?
Which scenario represents the MOST serious violation of appraisal independence requirements?
An MLO's license is suspended for 6 months, but after 3 months, the MLO demonstrates completion of remedial actions. Can the regulator lift the suspension early?
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An MLO's license was suspended for 90 days due to failure to maintain surety bond coverage. During the suspension period, the MLO may:
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A loan originator learns that an appraisal is scheduled and mentions to the listing agent, "I hope the property shows well for the appraiser." This statement is: