A lender establishes an appraisal management company (AMC) as a subsidiary. To maintain appraisal independence, the AMC must:
Correct Answer
B) Be operationally independent from loan production
Even when an AMC is a subsidiary, it must maintain operational independence from loan production staff to comply with appraisal independence requirements under Dodd-Frank.
Why This Is the Correct Answer
Even when an AMC is a subsidiary, it must maintain operational independence from loan production staff to comply with appraisal independence requirements under Dodd-Frank.
More Origination Questions
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During a refinance transaction, the appraiser determines that significant unpermitted additions were made to the property. The appraiser wants to discuss this with the MLO before finalizing the report. What should the MLO do?
An appraiser discovers that a property has significant foundation issues that were not disclosed. The appraiser reduces the property value by $25,000 and includes detailed comments about the structural problems. The loan officer is upset because this will kill the deal. Under AIR, the loan officer:
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