Which of the following actions by an MLO would constitute prohibited appraisal influence?
Correct Answer
C) Telling the appraiser that the loan will not close unless the property appraises for the contract price
Under federal regulations, specifically the Dodd-Frank Act and appraisal independence requirements, MLOs cannot improperly influence an appraiser's valuation. Threatening that a loan will not close unless a specific value is reached constitutes prohibited influence.
Why This Is the Correct Answer
Under federal regulations, specifically the Dodd-Frank Act and appraisal independence requirements, MLOs cannot improperly influence an appraiser's valuation. Threatening that a loan will not close unless a specific value is reached constitutes prohibited influence.
More UST Questions
If a state regulatory authority finds violations during an examination, what factors typically influence the severity of enforcement action?
Under the SAFE Act, an individual who works for a federally chartered bank and takes mortgage applications must:
An MLO under investigation claims that certain requested documents are protected by attorney-client privilege because they were prepared in consultation with legal counsel. How should the state regulator respond?
Which scenario represents the MOST serious violation of appraisal independence requirements?
An MLO's license is suspended for 6 months, but after 3 months, the MLO demonstrates completion of remedial actions. Can the regulator lift the suspension early?
People Also Study
Federal Mortgage-Related Laws
23% of exam
General Mortgage Knowledge
23% of exam
Mortgage Loan Origination Activities
25% of exam
Ethics, Fraud & Consumer Protection
17% of exam
Previous Question
Which scenario represents the MOST serious violation of appraisal independence requirements?
Next Question
A pre-licensure education course provider offers a program with 8 hours of federal law, 8 hours of ethics, 2 hours of lending standards, and 2 hours of state law. Does this meet SAFE Act requirements?