A branch manager asks about a loan file because the person preparing the valuation would be paid more if the value is higher. What should happen?
Correct Answer
A) Remove the value-based compensation conflict
Lines 215-219; 12 CFR 1026.42(d). Valuation compensation cannot depend on the value assigned, and conflicts must be addressed before reliance. Therefore, the correct response is "Remove the value-based compensation conflict".
Why This Is the Correct Answer
Lines 215-219; 12 CFR 1026.42(d). Valuation compensation cannot depend on the value assigned, and conflicts must be addressed before reliance. Therefore, the correct response is "Remove the value-based compensation conflict".
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