Property Valuation
What is 'appraisal independence requirements' under federal law and how do they affect Hawaii home sales?
AA. Appraisers must be independent of all parties, but real estate agents may suggest property values to appraisers
BB. Appraisers must be independent and cannot be pressured by lenders, borrowers, or agents to reach a specific value conclusion; Dodd-Frank and appraiser independence rules protect this independence✓ Correct
CC. Appraisal independence only applies to commercial loan transactions
DD. Hawaii has its own appraisal independence requirements that supersede federal rules
Explanation
Appraiser independence requirements (under Dodd-Frank, FIRREA, and USPAP) prohibit lenders, borrowers, real estate agents, and others from pressuring appraisers to reach specific value conclusions. Appraisal Management Companies (AMCs) were created partly to buffer appraisers from lender pressure. Hawaii agents cannot contact appraisers to 'advocate' for value or threaten future business relationships based on value conclusions.
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