Which of the following actions by a mortgage loan originator would violate the Appraiser Independence Requirements?
Correct Answer
B) Telling the appraiser the minimum value needed for the loan to close
Communicating a target value or minimum value needed for loan approval constitutes improper influence under AIR. This type of communication can compromise the appraiser's independence and objectivity in determining market value.
Why This Is the Correct Answer
Communicating a target value or minimum value needed for loan approval constitutes improper influence under AIR. This type of communication can compromise the appraiser's independence and objectivity in determining market value.
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Previous Question
An MLO works for a company that pays a base commission plus an additional 'complexity fee' for loans that require more than 20 hours of processing time, regardless of loan terms. The complexity fee is the same dollar amount for all qualifying loans. This additional compensation:
Next Question
A mortgage loan originator receives a base salary of $50,000 plus a commission of 0.5% of the loan amount for each loan closed. Additionally, the lender offers a bonus of $500 for loans with interest rates above 6%. Which part of this compensation structure violates Dodd-Frank?