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?
Correct Answer
D) Tell the appraiser they cannot discuss valuation matters with loan originators
Under the Appraiser Independence Requirements, MLOs are prohibited from having substantive communications with appraisers about valuation conclusions or the development of the appraisal. The appraiser should communicate directly with appropriate lender personnel, not the MLO.
Why This Is the Correct Answer
Under the Appraiser Independence Requirements, MLOs are prohibited from having substantive communications with appraisers about valuation conclusions or the development of the appraisal. The appraiser should communicate directly with appropriate lender personnel, not the MLO.
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Previous Question
An appraiser contacts an MLO stating they cannot complete an appraisal by the scheduled closing date due to property access issues. The borrower asks the MLO to pressure the appraiser to rush the report. What is the MLO's appropriate response?
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An MLO's compensation structure includes higher payments for certain loan products. When is it acceptable to recommend these higher-compensated products?