Dodd-Frank introduced new appraisal independence regulations that require that on a higher-priced loan the appraiser does which of the following?

Dodd-Frank introduced new appraisal independence regulations that require that on a higher-priced loan the appraiser does which of the following?

• A. Physically performs a property visit of the interior of the property
• B. Use comparable sales from no further away than two (2) miles from the subject
• C. Not use comparable sales older than three (3) months from the loan application
• D. Not include any bank foreclosure properties in his or her evaluation

Answer: (A)

The key idea here is that for higher-priced mortgage loans, the appraisal independence rules require the appraiser to physically inspect the interior of the property. This interior visit lets the appraiser evaluate the condition, improvements, and features inside the home, which directly affect value and helps ensure an unbiased, accurate valuation. That interior inspection requirement is what makes the best answer. The other statements aren’t mandated by these rules: there isn’t a fixed two-mile comp radius, there isn’t a strict three-month age limit for comps in this context, and excluding bank foreclosures from the evaluation isn’t a requirements of the appraisal independence standards.

The key idea here is that for higher-priced mortgage loans, the appraisal independence rules require the appraiser to physically inspect the interior of the property. This interior visit lets the appraiser evaluate the condition, improvements, and features inside the home, which directly affect value and helps ensure an unbiased, accurate valuation.

That interior inspection requirement is what makes the best answer. The other statements aren’t mandated by these rules: there isn’t a fixed two-mile comp radius, there isn’t a strict three-month age limit for comps in this context, and excluding bank foreclosures from the evaluation isn’t a requirements of the appraisal independence standards.