A borrower-facing employee is unsure what to do when the person preparing the valuation would be paid more if the value is higher. What is the correct response?
Correct Answer
C) 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".
More Origination Questions
A disclosure specialist is resolving Income Calculation Methods during an internal audit sample. Which action best fits the rule?
In a closing-readiness check, a quality-control reviewer sees facts tied to Self Employed Income Calculation. What should the file reflect?
During a disclosure desk review, a policy analyst encounters an Income Calculation Self Employed issue. Which response should decide how the file should be documented?
During a training quiz scenario, the loan team encounters an Income Calculation issue. Which response should resolve the issue before the file moves forward?
A team member asks about Dodd Frank MLO Compensation in an investor-delivery review while trying to apply the requirement without relying on borrower preference. Which response should the loan team use?
A team member asks about Construction Loan Terms in a compliance desk review while trying to select the answer that fits the governing requirement. Which response should a disclosure specialist use?
During an advertising approval, a loan file reviewer identifies an issue involving sponsorship and employment status. Which response is most compliant?
A team member asks about Construction Loan Requirements in an investor-delivery review while trying to resolve the issue before the file moves forward. Which response should a licensing coordinator use?
During a disclosure desk review, a training manager encounters a Pre qualification vs Pre approval issue. Which response should decide how the file should be documented?
In a pricing desk question, the loan team sees facts tied to TRID Closing Disclosure Changes. What should the file reflect?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Uniform State Test Content
11% of exam
Related Study Resources
Previous Question
A disclosure specialist compares the file facts with TILA Loan Estimate Requirements during a licensing team review. Which conclusion is accurate?
Next Question
During a supervisory file review, a sponsorship reviewer identifies an issue involving sponsorship and employment status. Which response is most compliant?
