Property ValuationIntermediateAlaska Exam

Which of the following is TRUE about appraisal independence requirements for federally regulated lenders in Alaska?

ALoan officers may order appraisals directly from their preferred appraisers, though specific requirements can vary depending on the transaction details
BLenders must maintain independence between loan production and appraisal functions, using an appraisal management company or independent orderingCorrect
CAppraisal independence requirements only apply to FHA-insured loans
DLenders may share bonus arrangements with appraisers to ensure quality

Why Lenders must maintain independence between loan production and appraisal functions, using an appraisal management company or independent ordering Is Correct

Answer B: Lenders must maintain independence between loan production and appraisal functions, using an appraisal management company or independent ordering

The Dodd-Frank Act and federal agency guidance prohibit loan production staff from influencing or selecting appraisers. Lenders must maintain a separation ('firewall') between loan production and appraisal functions.

Exam Tip: Property Valuation

Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.

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