Property Valuation
What is 'appraisal independence' and why is it important in Nevada?
AThe appraiser's right to work independently without a license
BFederal and state requirements that appraisers operate free from pressure or influence from lenders, Realtors, or borrowers to hit a predetermined value✓ Correct
CThe right of an appraiser to choose which assignments to accept
DA Nevada rule requiring appraisers to be independent contractors
Explanation
The Home Valuation Code of Conduct (HVCC) and Dodd-Frank Act established appraisal independence requirements. Appraisers must be free from pressure to inflate values to support loan approvals. In Nevada, during the housing boom, inflated appraisals contributed to the bubble. Today, lenders use Appraisal Management Companies (AMCs) to create separation between loan officers and appraisers, ensuring objective valuations.
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