A branch manager tells an appraisal firm it will get "a lot more of our volume" if its values start supporting contract prices more often. No specific file is mentioned. Is that within the rule?
Correct Answer
A) Do not pressure the appraiser to reach a target value
Why this is correct: The principle is appraisal independence under 12 CFR 1026.42(c). The rule prohibits coercion of an appraiser, including pressuring for a specific value. The loan officer's intent to "raise the value to make the deal work" is a clear red flag. The processor must be instructed that the appraiser's judgment cannot be compromised. Why the other choices are wrong: Withholding the valuation copy until closing if the applicant does not ask is illegal; applicants have a right to receive the appraisal report promptly. Resolving the Independent appraisal requirement issue with a licensing exception that does not fit the facts is irrelevant and does not address the core violation of attempting to influence value. Asking the appraiser to ignore a condition issue is direct pressure to alter the appraisal's conclusions, which is prohibited. Exam tip: The rule is simple: never seek to influence the appraiser's value or findings. Any other action that interferes with the appraisal's integrity is wrong.
Why This Is the Correct Answer
The correct response is "Do not pressure the appraiser to reach a target value". Appraisal independence bars pressure or inducements that affect the valuation result.
Why the Other Options Are Wrong
Option B: Withhold the valuation copy until closing if the applicant does not ask.
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 C: Resolve the Independent appraisal requirement issue with the licensing exception that does not fit the facts.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
Option D: Ask the appraiser to ignore a condition issue so the loan can meet timing.
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.
Memory Technique
Target value, pressure, or future business in an appraisal stem is a red flag.
Exam Tip
For appraisal and valuation independence questions, separate the required file step from plausible sales, timing, or documentation shortcuts.
Common Mistakes to Avoid
- -A sales goal never justifies influencing an independent valuation.
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