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Which statement about appraisal independence is CORRECT?

Correct Answer

B) Lenders must have policies to ensure appraisal independence

Under Dodd-Frank Act Section 1472 and related regulations, lenders must establish and maintain policies to ensure appraisal independence. This includes prohibiting improper influence over appraisers and ensuring objective valuations.

Answer Options
A
MLOs can select appraisers based on their history of meeting value expectations
B
Lenders must have policies to ensure appraisal independence
C
MLOs can review appraisals before submission to underwriting
D
Appraisers can be paid bonuses for favorable valuations

Why This Is the Correct Answer

Under Dodd-Frank Act Section 1472 and related regulations, lenders must establish and maintain policies to ensure appraisal independence. This includes prohibiting improper influence over appraisers and ensuring objective valuations.

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