Under the Dodd-Frank Act's appraisal independence requirements, which party is prohibited from selecting the appraiser?
Correct Answer
B) The loan production staff
Dodd-Frank Act Section 1472 prohibits loan production staff from selecting, retaining, or providing compensation to appraisers to ensure appraisal independence and prevent conflicts of interest.
Why This Is the Correct Answer
Dodd-Frank Act Section 1472 prohibits loan production staff from selecting, retaining, or providing compensation to appraisers to ensure appraisal independence and prevent conflicts of interest.
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Previous Question
A borrower asks their MLO about the risks of an adjustable-rate mortgage (ARM) they are considering. The MLO knows rates are likely to increase but tells the borrower rates will probably stay low. This behavior violates which principle?
Next Question
A borrower wants to shop for homes in multiple price ranges. They have been pre-qualified for $400,000 but want to look at homes up to $500,000. What should the MLO recommend?