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:
Correct Answer
C) Cannot take any action to influence or pressure the appraiser
AIR prohibits any attempts to influence an appraiser's independent professional judgment. The appraiser's findings regarding property conditions and their impact on value must be respected, even if they negatively affect the transaction.
Why This Is the Correct Answer
AIR prohibits any attempts to influence an appraiser's independent professional judgment. The appraiser's findings regarding property conditions and their impact on value must be respected, even if they negatively affect the transaction.
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A borrower qualifies for a conventional loan at 4.5% interest and a government loan at 4.25% interest. Both loans have the same APR due to different fee structures. The MLO presents only the conventional loan because it generates higher compensation. This scenario represents:
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An MLO provides pre-qualification based on a borrower's current employment but learns the borrower is starting a new job next month with a $10,000 salary increase. How should this information be handled?