During a training quiz scenario, the supervisor encounters an AIR Appraiser Independence issue. Which response should confirm the rule-based response?
Correct Answer
A) Provide valuation copies within the required timing
Why this is correct: The scenario involves an AIR (Appraiser Independence Requirements) issue. AIR rules mandate that creditors provide a copy of the appraisal report to the applicant promptly, typically no later than three days before closing. Providing valuation copies within the required timing is a direct compliance requirement. Why the other choices are wrong: "Discuss a target value with the appraiser to keep the transaction alive" is wrong because it compromises appraiser independence; creditors cannot influence the valuation. "Order a second appraisal solely because the first value was too low" is wrong unless there are legitimate grounds (e.g., material errors); ordering solely for a higher value violates independence rules. "Withhold the valuation copy until closing if the applicant does not ask" is wrong because providing the copy is mandatory, not contingent on a request. Exam tip: For appraisal issues, remember the twin pillars: independence and timely delivery of copies to the borrower.
Why This Is the Correct Answer
The correct response is "Provide valuation copies within the required timing" because Appraisal handling requires valuation independence and timely valuation copies.
Why the Other Options Are Wrong
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 C: 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 D: 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.
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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