An MLO receives an appraisal report that shows the property value is $10,000 below the contract price. The borrower asks the MLO to request a 'second look' from the appraiser. What is the MLO's appropriate response?
Correct Answer
B) Explain that they cannot communicate with the appraiser about valuation matters
Under the Appraiser Independence Requirements in Dodd-Frank, MLOs are prohibited from seeking to influence an appraiser or the development of an appraisal. The MLO cannot request the appraiser reconsider the valuation or provide additional analysis.
Why This Is the Correct Answer
Under the Appraiser Independence Requirements in Dodd-Frank, MLOs are prohibited from seeking to influence an appraiser or the development of an appraisal. The MLO cannot request the appraiser reconsider the valuation or provide additional analysis.
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During pre-qualification, a self-employed borrower states their annual income is $100,000. For pre-approval, they provide tax returns showing $75,000 in adjusted gross income after business deductions. How should the MLO proceed?
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A borrower files joint tax returns with their spouse but is applying for the mortgage individually. The borrower's separate income shown on supporting documents differs from what can be determined from the joint return. The MLO should: