A mortgage file is paused during a risk-control review because of AIR Appraiser Independence. Which answer should explain the required action to the team?
Correct Answer
C) Remove value-based compensation or retaliation pressure
Why this is correct: "Remove value-based compensation or retaliation pressure" directly addresses a core AIR prohibition. An appraiser's fee must be based on the work performed, not the outcome, and they must be shielded from threats for delivering an undesired value. Why the other choices are wrong: "Discuss a target value with the appraiser to keep the transaction alive" is wrong because any communication aimed at suggesting a target value is prohibited coercion under AIR. "Assume the AIR Appraiser Independence condition is met because the borrower satisfied the separate state renewal requirement" is wrong because appraiser licensing/state renewal is a separate issue and does not fulfill the lender's ongoing duty to ensure independence in the specific transaction. "Withhold the valuation copy until closing if the applicant does not ask" is wrong because regulations generally require providing a copy of the appraisal report promptly upon completion, typically no later than three days before closing, regardless of whether the borrower asks. Exam tip: Think of the appraiser as an independent judge of value. Any action that tries to influence the verdict—whether through payment, pressure, or communication—violates AIR.
Why This Is the Correct Answer
The correct response is "Remove value-based compensation or retaliation pressure" because Appraisal handling requires valuation independence and timely valuation copies.
Why the Other Options Are Wrong
Option A: 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 B: Assume the AIR Appraiser Independence condition is met because the borrower satisfied the separate state renewal requirement.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
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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