A lender's automated valuation model (AVM) indicates a property value of $300,000, but the appraisal comes in at $275,000. The underwriter asks the MLO to have the appraiser 'review the AVM data.' This request is:
Correct Answer
B) Prohibited pressure to achieve a predetermined value
Asking an appraiser to review AVM data that suggests a higher value constitutes prohibited pressure to achieve a predetermined value. AIR prohibits using AVMs or other valuation tools to pressure appraisers to change their professional judgment.
Why This Is the Correct Answer
Asking an appraiser to review AVM data that suggests a higher value constitutes prohibited pressure to achieve a predetermined value. AIR prohibits using AVMs or other valuation tools to pressure appraisers to change their professional judgment.
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A dual-licensed professional works as both an MLO and a real estate agent. When originating a mortgage for a client where they also represented the buyer in the real estate transaction, they receive their normal MLO compensation plus a real estate commission. This dual compensation is:
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