TILA Rules Related To Appraisal Reports

Question 1

Creditors/mortgage brokers are prohibited from influencing an appraiser to misstate the value of the dwelling, what are the 5 different actions that are prohibited?

Answer 1

1. ) Implying.
2. ) Excluding.
3. ) Minimum Reported Value.
4. ) Failing to Compensate.
5. ) Conditioning.

Question 2

According to TILA Rules related to Appraisal Reports, describe the outlawed practice of Implying.

Answer 2

Implying to an appraiser that current or future retention of the appraiser depends on the amount at which the appraiser values a consumer’s principal dwelling.

Question 3

According to TILA Rules related to Appraisal Reports, describe the outlawed practice of Excluding.

Answer 3

Excluding an appraiser from consideration for future engagement because the appraiser reports a value of a consumer’s principal dwelling that does not meet or exceed a minimum threshold.

Question 4

According to TILA Rules related to Appraisal Reports, describe the outlawed practice of Minimum Reported Value.

Answer 4

Telling an appraiser a Minimum Reported Value of a consumer’s principal dwelling that is needed to approve the loan.

Question 5

According to TILA Rules related to Appraisal Reports, describe the outlawed practice of Failing to Compensate.

Answer 5

Failing to Compensate an appraiser because the appraiser does not value a consumer’s principal dwelling at or above a certain amount.

Question 6

According to TILA Rules related to Appraisal Reports, describe the outlawed practice of Conditioning.

Answer 6

Conditioning an Appraiser’s compensation on loan consummation.

Question 7

According to TILA Rules related to Appraisal Reports, what 4 practices are not prohibited?

Answer 7

1. ) Asking an appraiser to consider additional info about the dwelling.
2. ) Asking an appraiser to correct factual errors.
3. ) Obtaining multi. appraisals of a dwelling.
4. ) Withholding compensation from an appraiser for breach of contract.