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AFE · Question #189

AFE Question #189: Real Exam Question with Answer & Explanation

The correct answer is D. Any one out of A and B. See the full explanation below for the reasoning.

Question

Evidences the fair market value of the property that is security for the mortgage loan. The appraisal value is used to determine that the loan to market value ratio is in compliance with regulatory requirements. It also is used to determine any non-admitted mortgage loan amount. Appraisals are obtained from:

Options

  • AIndependent, qualified appraisers
  • BThe company's own qualified appraisers
  • CFederal Housing Administration
  • DAny one out of A and B

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