Finance
A Colorado lender who discovers that the appraisal for a property was inflated through fraud (appraisal fraud) may:
AA. Do nothing if the loan has already closed
BB. Report the appraiser to the Colorado Board of Real Estate Appraisers and potentially seek legal remedies✓ Correct
CC. Only file a complaint with the MLS
DD. Have no recourse if the property is already sold
Explanation
Appraisal fraud is a federal crime and a state violation. Colorado lenders who discover fraudulent appraisals should report the appraiser to the Colorado Board of Real Estate Appraisers (which can revoke the appraiser's license) and may report to the FBI and HUD if it involves a federal loan. Civil remedies are also available.
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