Property Valuation

An Indiana broker submits a broker price opinion (BPO) for a bank. A BPO differs from an appraisal in that:

AA BPO is more accurate than an appraisal
BA BPO is prepared by a licensed broker (not a licensed appraiser) and does not comply with USPAP or satisfy appraisal requirements for federally related loans✓ Correct
CA BPO may be used for all residential mortgage lending
DA BPO is required by Indiana law for all short sales

Explanation

A BPO is a market value estimate prepared by a real estate broker, not a licensed appraiser, and does not comply with USPAP. It may not be used in place of an appraisal for federally related mortgage transactions.

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