A quality-control reviewer is resolving Appraisal Requirements during a loan setup review. Which action best fits the rule?
Correct Answer
A) Provide valuation copies within the required timing
Why this is correct: Appraisal rules, including those under TILA and Regulation B, require that a copy of the appraisal or other written valuation be provided to the borrower promptly, typically no later than three business days before closing. This ensures transparency and allows the borrower to review the valuation. Why the other choices are wrong: "Ask the appraiser to ignore a condition issue so the loan can meet timing" is wrong because it pressures the appraiser and compromises the independence and accuracy of the appraisal. "Resolve the Appraisal Requirements issue with the high-cost loan exception that does not fit the facts" is wrong because misapplying an exception (e.g., for a high-cost mortgage) is non-compliant if the loan does not meet that criteria. "Use production pressure to influence the appraiser delivery date or conclusion" is wrong because any pressure on an appraiser violates independence requirements. Exam tip: Timely delivery of the appraisal copy to the borrower is a mandatory, separate requirement from the independence rules. Don't confuse the two.
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: 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: Resolve the Appraisal Requirements issue with the high-cost loan exception that does not fit the facts.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
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
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