An NC appraiser who over-values a property to help a borrower qualify for a loan has committed:
Why Appraisal fraud — a serious violation of USPAP, federal law, and NC licensing requirements Is Correct
Answer B: Appraisal fraud — a serious violation of USPAP, federal law, and NC licensing requirements
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.
Key Property Valuation Terms in This Question
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Related North Carolina Questions
- Which federal law requires lenders to provide the Loan Estimate to a borrower within 3 business days of receiving a loan application?Finance
- The Uniform Standards of Professional Appraisal Practice (USPAP) is issued by:Property Valuation
- A NC appraiser performing a 'retrospective appraisal' is estimating the value of a property:Property Valuation
- NC appraisers must comply with the Uniform Standards of Professional Appraisal Practice (USPAP). USPAP requires appraisers to provide:Property Valuation
- A NC appraiser's 'workfile' for an appraisal must be retained for how many years?Property Valuation
Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
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