Which scenario represents the MOST serious violation of appraisal independence requirements?
Correct Answer
C) An MLO offers to pay an appraiser a bonus if the property appraises at contract price
Offering financial incentives tied to achieving a specific valuation is a severe violation of appraisal independence under Dodd-Frank Act requirements. This directly compromises the appraiser's objectivity and is explicitly prohibited under federal regulations.
Why This Is the Correct Answer
Offering financial incentives tied to achieving a specific valuation is a severe violation of appraisal independence under Dodd-Frank Act requirements. This directly compromises the appraiser's objectivity and is explicitly prohibited under federal regulations.
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?
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?
An MLO tells a borrower, "Don't worry about the appraisal - I've never seen one come in low in this neighborhood." If the MLO has no statistical basis for this claim, it constitutes:
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