In a training scenario, a loan officer wants the appraiser to raise the value to make the deal work. What action best follows the rule?
Correct Answer
B) Do not pressure the appraiser to reach a target value
Why this is correct: The governing concept is appraisal independence under Regulation Z (the governing federal rule This rule prohibits anyone with an interest in the transaction from coercing, influencing, or pressuring an appraiser to reach a specific valuation. The original explanation highlights that such pressure or inducements to affect the valuation result are barred. Therefore, "Do not pressure the appraiser to reach a target value" is the mandatory ethical and legal course. Why the other choices are wrong: "Route reconsideration requests through sales staff instead of the allowed valuation process" is incorrect because it bypasses proper channels and could imply improper influence. "Use production pressure to influence the appraiser delivery date or conclusion" is wrong because even pressuring on timing to affect the outcome violates independence rules. "Discuss a target value with the appraiser to keep the transaction alive" is prohibited because suggesting a target value constitutes improper influence, regardless of intent. Exam tip: Appraisal independence means no pressure on value, timing, or outcome. Any attempt to sway the appraiser's independent judgment is a violation.
Why This Is the Correct Answer
The correct response is "Do not pressure the appraiser to reach a target value" because Lines 215-219; 12 CFR 1026.42(c).
Why the Other Options Are Wrong
Option A: Route reconsideration requests through sales staff instead of the allowed valuation process.
This choice is a tempting shortcut, but it conflicts with appraisal and valuation independence because the file still needs the required documentation, timing, or rule-based review before the action is taken.
Option C: Use production pressure to influence the appraiser delivery date or conclusion.
This choice is not the best answer because it applies the wrong file step for appraisal and valuation independence; the governing rule is tested by the correct option.
Option D: Discuss a target value with the appraiser to keep the transaction alive.
This choice is not the best answer because it applies the wrong file step for appraisal and valuation independence; the governing rule is tested by the correct option.
Memory Technique
appraisal and valuation requirements: identify the rule being tested, then choose the action that documents or applies that rule before the file moves forward.
Exam Tip
For appraisal and valuation independence questions, separate the required file step from plausible sales, timing, or documentation shortcuts.
Common Mistakes to Avoid
- -Choosing an internal exception instead of the governing rule
- -Treating preliminary or informal facts as a substitute for required documentation
- -Answering from a familiar but unrelated mortgage topic
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