A mortgage broker tells an appraiser that the property 'needs to come in at $350,000 because that's what the borrower paid for it.' This statement:
Correct Answer
B) Violates AIR by attempting to influence the appraised value
This statement violates AIR by attempting to influence the appraiser to reach a predetermined value. While providing the purchase contract is appropriate, telling an appraiser what value the property 'needs' to appraise for constitutes improper influence under Section 129E of TILA.
Why This Is the Correct Answer
This statement violates AIR by attempting to influence the appraiser to reach a predetermined value. While providing the purchase contract is appropriate, telling an appraiser what value the property 'needs' to appraise for constitutes improper influence under Section 129E of TILA.
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
Previous Question
A Loan Estimate shows total loan costs subject to 10% cumulative tolerance of $3,000. At closing, these costs total $3,400. The lender must provide a cure by crediting the borrower how much?
Next Question
A borrower wants to refinance their current mortgage to access $50,000 in cash for home improvements. The new loan will have a 0.25% higher interest rate but the same term. What additional documentation is required to demonstrate tangible net benefit?