A borrower disputes the appraised value and provides a recent sale two streets away that the report missed. The loan officer asks whether he may send it to the appraiser. What separates a proper reconsideration from pressure?
Correct Answer
C) Do not pressure the appraiser to reach a target value
Why this is correct: Proper handling is defined by the appraisal independence requirements of 12 CFR 1026.42(c). The procedure must ensure that no one associated with the loan transaction pressures the appraiser to reach a target value. This is the foundational rule for any appraisal-related issue. Why the other choices are wrong: Removing unfavorable valuation comments before giving the report to the applicant is falsifying the report, which is illegal and violates both independence and disclosure rules. Asking the appraiser to ignore a condition issue is a direct attempt to influence the appraisal's content, which is prohibited. Delaying the Independent appraisal requirement step until a later advertising disclosure review is an irrelevant procedural misstep that fails to address the immediate violation of attempting to influence value. Exam tip: The proper procedure is always to protect the appraiser's independence. Any step that alters, influences, or delays based on the desired loan outcome is non-compliant.
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: Remove unfavorable valuation comments before giving the report to the applicant.
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: 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 D: Delay the Independent appraisal requirement step until a later advertising disclosure review instead of acting now.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
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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