Of the work related to issuing the title insurance, for which he receives a percentage of the title insurance. C. misrepresentation. A CMEA's defensible appraisal will withstand scrutiny. BORROWER VERSUS LOAN OFFICER VERSUS APPRAISER. C. Real estate brokers buying points to help borrowers qualify for loans.
A lender who does not automatically cancel PMI when the LTV reaches 78% is in violation of: c. HOEPA. Remind the borrower that the appraisal inspection is not the same as a home inspection and will often take 20 to 45 minutes. Credit report once every __________ from each of the three nationwide consumer credit reporting companies—Equifax®, Experian®, and TransUnion®. So, start looking for that in yourself like, "Where am I going? The borrower may conceal this experience until their loan is negatively affected by the outcome of the appraisal. The buyer gives Bob an income statement indicating the $5, 000 monthly income, but it is from a company that Bob has never heard of. C. promissory notes. C. name, address, and phone number of the title company. Maintains The Utmost Appraiser Ethics. C. the annual percentage rate, fully spelled out. Regarding a national fee panel or appraiser roster, which statement is INCORRECT?
When completing a loan application, a consumer who intentionally withholds information that would. Title VIII of the Civil Rights Act of 1968 and the Fair Housing Amendments Act of 1988, taken together constitute the Fair Housing Act, which prohibits discrimination based on rate, national origin, color, religion, age, sex, and handicap status. Keep in mind that AVMs typically operate on limited data about the subject and sales and may have limited coverage and reliability. D. YSP does not exceed 1. D. This is of no concern to the lender as long as the property appraises for the indicated value. Describe your ethical obligations pertaining to appraisers loan originators. B. faxes a copy of the loan application to a lender. One purpose of the Home Valuation Code of Conduct (HVCC) is to prevent lenders from: a. packaging loans with credit insurance and other fees that add no value. Fair Trade Commission Act. The use of false presences, including fraudulent statements and impersonation, to obtain consumers' personal financial information, such as bank balances, is known as: a. consumer protection. It is unethical for a member of a duly authorized professional peer review committee to disclose confidential information presented to the committee.
It is the goal of the Ethical Issues Committee to educate our members while resolving ethical concerns between NAJA members and the public. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Current and past editions of USPAP can be purchased on the Appraisal Foundation website and a free online only version of the current edition of USPAP can be found at. D. Yes, this is a win-win. • The appraisal may uncover important information for the borrower – Explain to the borrower that the appraisal represents a second set of eyes on the property and may reveal information that is useful to the borrower prior to purchasing the home. Under TILA, which of the following is not included in the finance charge for a real estate loan? Solved] Describe your ethical obligations pertaining to appraisers.... | Course Hero. Agent Alex suggests that John may be happier in a more diverse neighborhood. The other one, you could be like, "Man, I just killed a guy, " and they'd be like, "I'll bring my car over. For example, appraisers must store their work files for at least five years, which Valuation Link employs as part of its standard routine.
Why is fraud for profit considered a more sophisticated version of mortgage fraud? C. Home Equity Loan Consumer Protection Act. Has no intention of repaying it), and Jack approves the loan. A. Beliefs about which things are right and which are wrong as applied to others. CODE OF ETHICS, STANDARDS OF PROFESSIONAL PRACTICE AND CODE OF CONDUCT. MENTALLY PREPARE THE BORROWER FOR THE APPRAISAL.
The Homeowners Protection Act (HPA) requires lenders to cancel the PMI when the LTV reaches 78% during normal amortization of the loan. B. discourage early payoff of highly profitable loans. Describe your ethical obligations pertaining to appraisers. quizlet. COMPETENCY RULE which presents pre-assignment and assignment conditions for knowledge and experience. The lending practice of putting uninformed consumers in high-fee loans, encouraging frequent refinancing. The occurrence of a subsequent event directly related to the appraiser's opinions and specific to the assignment's purpose.
The most common fraudulent act committed by appraisers is to: a. falsify appraiser credentials. That's Why A CMEA Professional Designation Is The PERFECT Avenue To Improve Professional Competence When Faced With Assigning A Value To Tangible Assets. • The appraisal is more than an inspection – It's not uncommon for borrowers to feel slighted when the appraisal fee is costly, and they only see the appraiser for 20 to 45 minutes. D. securities firms. Appraisers are required to analyze the transfer history of a property for the previous 3 years. Let's explore some areas where these items interact with real estate appraisals. Of the choices presented, which is the best description of values? C. Broker Betty tells homeowners that their property values will drop if illegal families move in to the. They froze every single deal that company had in the pipeline. A lender would violate RESPA by: a. charging a borrower an attorney fee for legal services. Equal Credit Opportunity Act. Describe your ethical obligations pertaining to appraisers. I want to talk to you about ethics, which is a really tough subject to talk about. Which type of real estate professional is exempt from the Fair Housing Act?
Set forth the appraiser's opinion of the Highest and Best Use of the real estate, when such an opinion is necessary and appropriate. Which federal law requires that the phrase "equal housing lender" be used in any advertisement that is broadcast? C. Stated Income/Stated Asset. "What church do you attend? This assuresan appraisal will be substantiated, accurate, irrefutable and defensible. The appraiser shall: disclose lack of knowledge and/or experience to the client before accepting the assignment; take all steps necessary or appropriate to complete the assignment competently; and, describe the lack of knowledge and/or experience and the steps taken to complete the assignment competently in the report. Alternative Mortgage Transaction Parity Act. A Code of Ethics for Lenders | St. Louis Fed. C. Quote the interest rate only. From the appraiser's perspective, they are being hired to provide an independent, objective and supported analysis of the property, market and market value. And so, the specific instructions were, white out the wife's name, and then make a photocopy, and then send it off to the lender. The Appraisal Institute has a long history as the leader of the valuation profession and as a developer of valuation standards. Certain matters pertaining to an assignment are to be shared exclusively with the appraiser's client.
C. No, this assignment is permitted if the fees are disclosed properly. And then, dive in and go, "Okay. International Valuation Standards (IVS). Department of Human Resources. B. borrows more for the property.
The three principal parts to the privacy requirements are the Financial Privacy Rule, Safeguards Rule, and Pretexting provisions. D. discloses all loan fees and terms early in the loan process. Direct contact between the lender and the client would be illegal. The customer is not required to use the services of that title company and the. C. closing costs total. In this scenario, Rob would be considered a: a. bona fide buyer. A mortgage broker may be paid a yield spread premium (YSP) by a lender for selling a loan at an interest. Requirements to become a licensed appraiser have increased more than ever before.
Values are subjective and mutable. Put a Bow on It – After the appraisal inspection is complete, it may help to touch base with the borrower to assess their experience. B. has the option of completing it or not completing it. Who has violated RESPA?
The MBREA considers these requirements representative of prudent, professional real estate appraisal practice. A Code of Ethics for Lenders. If you have any questions about displaying, using, distributing and/or adopting the SVP please contact: The Uniform Standards of Professional Appraisal Practice. If lower than the contract price, there are some potential options available to the borrower, including renegotiating the contract price or having underwriting staff provide additional information to the appraiser for consideration. Equity stripping: a. is a way for lenders to protect investors from predatory lending practices. Service is: a. Serviceman's Readjustment Act of 1944. b. Servicemembers Civil Relief Act. An appraiser must not engage in criminal conduct. Send the original documents via certified mail to the borrower. Patty is a mortgage broker who owns a 3% interest in the ABC Escrow Company. The __________ establishes procedures for correcting mistakes on a person's credit record and requires. • Prepare a list for the appraiser – Let the borrower know that they should consider putting together a list of features, updates, renovations and other key information about their property for the appraiser.