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".
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