A quality-control review finds an email chain in which an originator asked an appraiser to "revisit" a value four times in two days, each message repeating the number needed and adding no new information about the property. What does the file show?
Correct Answer
D) Do not pressure the appraiser to reach a target value
Why this is correct: The safe, compliant answer is rooted in the appraisal independence protections of 12 CFR 1026.42(c). This regulation makes it illegal to pressure an appraiser to reach a specific value. Discovering that a loan officer wants the value raised is a serious issue that must be corrected by reaffirming the prohibition on such pressure. Why the other choices are wrong: Removing unfavorable valuation comments before giving the report to the applicant is altering the official report, which is fraudulent and violates disclosure rules. Asking the appraiser to ignore a condition issue is direct pressure to change the appraisal's factual findings, which is prohibited. Routing reconsideration requests through sales staff instead of the allowed valuation process improperly inserts loan personnel into the appraisal process, risking influence. Exam tip: Safety lies in complete non-interference with the appraiser's independent judgment. Any tampering with the report or its process is a violation.
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: Remove unfavorable valuation comments before giving the report to the applicant.
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: 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: Route reconsideration requests through sales staff instead of the allowed valuation process.
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.
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?
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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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