A lender's appraisal review process reveals that 15% of appraisals from a particular appraiser come in exactly at contract price, while industry average is 5%. The lender should:
Correct Answer
B) Investigate potential bias and consider removing the appraiser from their panel
Lenders must monitor appraiser performance for potential bias. An unusually high rate of appraisals meeting contract price suggests possible bias and requires investigation. AIR requires lenders to maintain quality control systems to identify such patterns.
Why This Is the Correct Answer
Lenders must monitor appraiser performance for potential bias. An unusually high rate of appraisals meeting contract price suggests possible bias and requires investigation. AIR requires lenders to maintain quality control systems to identify such patterns.
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