Ethics · 18% of the SAFE exammedium
Correct answer: Appraisal fraud through intentional misrepresentation of value
When an appraiser intentionally cherry-picks comparable sales to support a predetermined value rather than performing an objective analysis, this constitutes appraisal fraud. USPAP (Uniform Standards of Professional Appraisal Practice) requires appraisers to develop unbiased opinions of value. Deliberately selecting only favorable comparables to inflate value misrepresents the property's true market value and can expose lenders to significant losses. An appraiser has legitimate discretion in comparable selection, but only when exercised with objectivity, not to reach a predetermined conclusion.
CRAM ARCADE has the full NMLS question bank, timed practice exams, focus drills on your weakest category, flashcards and spaced repetition. No credit card.
Start studying free