An MLO's family member works as an appraiser and occasionally appraises properties for the MLO's borrowers through the normal appraisal management company rotation. The MLO never requests this appraiser specifically. Is this arrangement problematic?
Correct Answer
B) No, if the appraiser is selected through normal AMC procedures without MLO influence
If the appraiser is selected through normal appraisal management company procedures without any influence from the MLO, and the MLO doesn't request or benefit from the family relationship, this typically doesn't create a prohibited conflict of interest.
Why This Is the Correct Answer
If the appraiser is selected through normal appraisal management company procedures without any influence from the MLO, and the MLO doesn't request or benefit from the family relationship, this typically doesn't create a prohibited conflict of interest.
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An MLO tells Asian applicants that they need larger down payments 'because that's what investors prefer for your type of loan,' while telling similarly qualified white applicants that standard down payments are acceptable. This practice represents:
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Which of the following scenarios would MOST likely require the filing of a Suspicious Activity Report (SAR)?