An appraisal management company proposes a fee schedule: $550 per report as standard, rising to $700 for reports that come in at or above the contract price. Operations is asked to approve it before the quarter starts.
Correct Answer
A) Do not pressure the appraiser to reach a target value
Why this is correct: The correct response is mandated by appraisal independence rules (the governing federal rule A borrower-facing employee must understand that it is illegal to pressure an appraiser for a target value, regardless of the loan officer's desires or the deal's viability. Why the other choices are wrong: Ordering a second appraisal solely because the first value was too low is appraisal shopping, which is a prohibited practice to coerce a higher value. Withholding the valuation copy until closing if the applicant does not ask violates the requirement to provide the appraisal copy promptly upon completion or at least three days before closing. Applying the TRID timing rule even though the file is testing Independent appraisal requirement is a distraction; the core issue is coercion, not disclosure timing. Exam tip: When in doubt, the rule is absolute: no pressure on the appraiser. Disclosure and timing rules are separate and do not override this core prohibition.
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 B: 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.
Option C: Withhold the valuation copy until closing if the applicant does not ask.
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: Apply the TRID timing timing rule even though the file is testing Independent appraisal requirement.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
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
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