Which combination of factors would most strongly suggest an inflated appraisal?
Correct Answer
A) Appraisal value 40% higher than recent comparable sales with similar adjustments
An appraisal value significantly higher than comparable sales without reasonable justification is a primary indicator of appraisal fraud. The Dodd-Frank Act requires appraisal independence and accuracy. A 40% variance from comparables without proper support suggests manipulation to inflate property value.
Why This Is the Correct Answer
An appraisal value significantly higher than comparable sales without reasonable justification is a primary indicator of appraisal fraud. The Dodd-Frank Act requires appraisal independence and accuracy. A 40% variance from comparables without proper support suggests manipulation to inflate property value.
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