A lender’s panel coordinator is asked to remove an appraiser from the rotation because "his numbers are always low". The appraiser has no quality complaints on file. What does the rule require?
Correct Answer
B) Do not pressure the appraiser to reach a target value
Why this is correct: Appraisal independence rules under Regulation Z (12 CFR 1026.42) prohibit coercing, bribing, or pressuring an appraiser to reach a predetermined value. The loan officer's request to raise the value is a direct example of prohibited pressure. The correct action is to never pressure the appraiser to reach a target value. Why the other choices are wrong: "Ask the appraiser to ignore a condition issue so the loan can meet timing" is wrong because it is an attempt to influence the appraiser's professional judgment for the sake of loan timing, which violates independence rules. "Route reconsideration requests through sales staff instead of the allowed valuation process" is wrong because it bypasses the proper, impartial channels for valuation feedback, creating improper influence from sales personnel. "Use production pressure to influence the appraiser delivery date or conclusion" is wrong because applying pressure related to loan production to affect either the timing or the outcome of an appraisal is a clear violation of appraisal independence. Exam tip: Remember the core rule: you cannot do anything to influence an appraiser's value, timing, or conclusion. If a question involves asking, pressuring, or routing requests improperly, it's a violation.
Why This Is the Correct Answer
The correct response is "Do not pressure the appraiser to reach a target value" because Lines 215-219; 12 CFR 1026.42(c).
Why the Other Options Are Wrong
Option A: 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.
Option C: Route reconsideration requests through sales staff instead of the allowed valuation process.
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.
Option D: 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.
Memory Technique
appraisal and valuation requirements: identify the rule being tested, then choose the action that documents or applies that rule before the file moves forward.
Exam Tip
For appraisal and valuation independence questions, separate the required file step from plausible sales, timing, or documentation shortcuts.
Common Mistakes to Avoid
- -Choosing an internal exception instead of the governing rule
- -Treating preliminary or informal facts as a substitute for required documentation
- -Answering from a familiar but unrelated mortgage topic
More Origination Questions
Before the team acts on a servicing handoff check, a closing coordinator must address Asset Verification and Reserves. Which response is most defensible?
An MLO is reviewing procedures for a case where a cost changes after the Closing Disclosure has already been provided. What is the proper handling?
During a post-application update, a quality-control reviewer encounters a Credit Analysis and Evaluation issue. Which response should avoid a shortcut that would misapply the rule?
A construction-to-permanent loan will disburse in 5 draws over 11 months before the permanent phase begins. Which Regulation Z appendix provides a disclosure method for multiple-advance construction transactions?
Before closing, the team discovers that a borrower asks which upfront charge can be collected before intent to proceed. What is the safest compliant answer?
A construction loan agreement allows advances only after documented completion of specified work. A builder requests the next draw, but no completion evidence has been provided. What should occur?
Before releasing the final construction draw, which combination most directly supports project completion and clear collateral?
A construction-to-permanent loan will convert to a substantially higher fully amortizing payment. Which payment is especially important when assessing the borrower's long-term repayment capacity?
A construction-to-permanent note states that conversion requires completion, a certificate of occupancy, and no unresolved liens. Construction is finished, but a mechanic's lien remains. What should happen?
A branch manager asks about a loan file because a processor wants to omit known monthly obligations from underwriting. What should happen?
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 branch manager asks about a loan file because the consumer locks the interest rate after the initial disclosure package. What should happen?
Next Question
Post-closing review of a loan funded 3 weeks ago finds the borrower's employment was verified 71 days before consummation, against an internal standard of 10 days. If the loan purchaser also requires verification within ten days, what principal risk does this stale verification create?