Which entity is responsible for investigating complaints about appraisal independence violations?
Correct Answer
D) The appropriate federal banking regulator
AIR violations are investigated and enforced by the appropriate federal banking regulator (OCC, Federal Reserve, FDIC, or NCUA) depending on the type of financial institution involved in the transaction.
Why This Is the Correct Answer
AIR violations are investigated and enforced by the appropriate federal banking regulator (OCC, Federal Reserve, FDIC, or NCUA) depending on the type of financial institution involved in the transaction.
More Origination Questions
For a construction-to-permanent loan, when must the initial Closing Disclosure be provided for the construction phase?
An appraiser discovers that a property has significant foundation issues that were not disclosed. The appraiser reduces the property value by $25,000 and includes detailed comments about the structural problems. The loan officer is upset because this will kill the deal. Under AIR, the loan officer:
A borrower wants to compare an adjustable-rate mortgage (ARM) to a fixed-rate mortgage. What is the MOST important disclosure the MLO must provide about the ARM?
An MLO provides pre-qualification based on a borrower's current employment but learns the borrower is starting a new job next month with a $10,000 salary increase. How should this information be handled?
An MLO issues a pre-approval letter that states 'subject to satisfactory appraisal and final underwriting approval.' The borrower uses this letter to make an offer, but the appraisal comes in $15,000 below the purchase price. What is the lender's obligation?
A borrower's bank statement shows monthly service fees of $25 and overdraft fees totaling $150 over two months. How should the MLO address this in the loan evaluation?
A borrower submits a mortgage application on Monday at 2:00 PM. The lender determines the application is complete on Wednesday at 10:00 AM. What is the latest day the Loan Estimate must be delivered to comply with TRID requirements?
How long is a typical pre-approval letter valid?
During the application process, an MLO realizes that a borrower would qualify for a government program with better terms, but the MLO's company doesn't offer that program type. What does good faith require?
A borrower requests a rate lock on a construction-to-permanent loan where the construction phase is 8 months and the permanent phase begins immediately after. The lender's rate lock policy allows maximum 120-day locks. How should the MLO handle this situation?
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A borrower files joint tax returns with their spouse but is applying for the mortgage individually. The borrower's separate income shown on supporting documents differs from what can be determined from the joint return. The MLO should:
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An MLO's spouse owns a small appraisal management company. The MLO wants to use this AMC for loans they originate. Under AIR, this arrangement is: