The appraisal returns at $389,000 on a $405,000 contract. A processor is told to hold the appraiser’s $650 invoice unpaid until a revised report arrives at or above the contract price. She asks whether withholding the fee that way is allowed.
Correct Answer
C) Do not pressure the appraiser to reach a target value
Why this is correct: The legal requirement is appraisal independence (the governing federal rule This prohibits any communication that could be seen as influencing the appraiser's valuation. The branch manager must ensure that no one pressures the appraiser to reach a target value, as the loan officer desires. Why the other choices are wrong: Using production pressure to influence the appraiser delivery date or conclusion is prohibited coercion, as timing pressure can affect the appraisal's thoroughness and outcome. Discussing a target value with the appraiser to keep the transaction alive is the explicit violation described in the rule. Ordering a second appraisal solely because the first value was too low is appraisal shopping, which is a form of prohibited coercion to obtain a higher value. Exam tip: Any action that implies a desired value or timeline to the appraiser violates independence. The appraiser must be free from all influence.
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 A: 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 B: 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.
Option D: Order a second appraisal solely because the first value was too low.
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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