An MLO tells a borrower, "The appraisal came back low, but don't worry - we can order a second appraisal and the lender will use the higher of the two values." If this statement is false, it constitutes:
Correct Answer
B) Prohibited misrepresentation of lender policies
Making false statements about lender policies regarding appraisals constitutes prohibited misrepresentation under state licensing laws. MLOs must accurately represent lender procedures and cannot make false claims about using higher of multiple appraisals if that is not the actual policy.
Why This Is the Correct Answer
Making false statements about lender policies regarding appraisals constitutes prohibited misrepresentation under state licensing laws. MLOs must accurately represent lender procedures and cannot make false claims about using higher of multiple appraisals if that is not the actual policy.
More UST Questions
If a state regulatory authority finds violations during an examination, what factors typically influence the severity of enforcement action?
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Which scenario represents the MOST serious violation of appraisal independence requirements?
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