The appraiser valuation independence obligates appraisers to perform their duties in a manner free from outside influence through which of the following actions?

The appraiser valuation independence obligates appraisers to perform their duties in a manner free from outside influence through which of the following actions?
A . Encouraging a target value
B . Withholding payment from an appraiser
C . Asking the appraiser to substantiate a value
D . Communication directly between the loan officer and the appraiser

View Answer

Answer: C

Explanation:

Under the Appraiser Independence Requirements (AIR), appraisers are obligated to perform their duties free from outside influence or coercion. Asking the appraiser to substantiate a value is permissible because it falls within the scope of ensuring an accurate and credible appraisal. However, it is not permissible to pressure the appraiser into achieving a target value (A) or to withhold payment (B) for unfavorable valuations.

Direct communication between the loan officer and the appraiser (D) may be restricted or controlled to prevent undue influence.

References:

Dodd-Frank Act, Appraisal Independence Rules

CFPB Valuation Independence Requirements