A lender's appraisal management company (AMC) maintains a panel of approved appraisers. The AMC removes an appraiser from the panel after the appraiser consistently provides valuations that are lower than expected. This action is:
Correct Answer
B) Prohibited under AIR if based solely on valuation outcomes
AIR prohibits removing appraisers from approved panels based primarily on the appraiser providing valuations that do not facilitate loan closings. This would constitute retaliation for independent professional judgment and violate appraiser independence principles.
Why This Is the Correct Answer
AIR prohibits removing appraisers from approved panels based primarily on the appraiser providing valuations that do not facilitate loan closings. This would constitute retaliation for independent professional judgment and violate appraiser independence principles.
More Origination Questions
A borrower has a construction-to-permanent loan with a 12-month construction phase. At month 10, construction is only 60% complete due to delays. What is the most likely outcome?
For a construction-to-permanent loan, when must the initial Closing Disclosure be provided for the construction phase?
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:
An MLO's compensation structure includes higher payments for certain loan products. When is it acceptable to recommend these higher-compensated products?
People Also Study
Federal Mortgage-Related Laws
23% of exam
General Mortgage Knowledge
23% of exam
Ethics, Fraud & Consumer Protection
17% of exam
Uniform State Test Content
12% of exam