Before the inspection, a sales assistant calls the appraiser to "give some context", including that the deal falls apart below $500,000. What is wrong with the call?
Correct Answer
D) Do not pressure the appraiser to reach a target value
Why this is correct: The appropriate correction is mandated by appraisal independence law (the governing federal rule A quality-control flag for a loan officer wanting the value raised requires immediate correction to prohibit any pressure on the appraiser. The valuation must be the appraiser's independent opinion. Why the other choices are wrong: Ordering a second appraisal solely because the first value was too low is coercion through appraisal shopping, which is prohibited. Withholding the valuation copy until closing if the applicant does not ask violates the borrower's right to timely receipt of the appraisal. Delaying the Independent appraisal requirement step until a later document-retention review is a procedural error that ignores the substantive violation of attempting to influence the appraiser. Exam tip: Quality control corrections must always enforce the core rule: no influence on value. Procedural delays or ordering new appraisals without valid, independent reasons are themselves violations.
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: 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 B: 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 C: Delay the Independent appraisal requirement step until a later document-retention 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.
More Origination Questions
Before the team acts on a servicing handoff check, a closing coordinator must address Asset Verification and Reserves. Which response is most defensible?
An MLO is reviewing procedures for a case where a cost changes after the Closing Disclosure has already been provided. What is the proper handling?
During a post-application update, a quality-control reviewer encounters a Credit Analysis and Evaluation issue. Which response should avoid a shortcut that would misapply the rule?
A construction-to-permanent loan will disburse in 5 draws over 11 months before the permanent phase begins. Which Regulation Z appendix provides a disclosure method for multiple-advance construction transactions?
Before closing, the team discovers that a borrower asks which upfront charge can be collected before intent to proceed. What is the safest compliant answer?
A construction loan agreement allows advances only after documented completion of specified work. A builder requests the next draw, but no completion evidence has been provided. What should occur?
Before releasing the final construction draw, which combination most directly supports project completion and clear collateral?
A construction-to-permanent loan will convert to a substantially higher fully amortizing payment. Which payment is especially important when assessing the borrower's long-term repayment capacity?
A construction-to-permanent note states that conversion requires completion, a certificate of occupancy, and no unresolved liens. Construction is finished, but a mechanic's lien remains. What should happen?
A branch manager asks about a loan file because a processor wants to omit known monthly obligations from underwriting. What should happen?
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