$21.$ Suppose an appraiser is trying to appraise a home in San Francisco that is located on a

nice hill. This home also has a view of downtown San Francisco and the Golden Gate Bridge.

The appraiser then gives the $$view$$ a value of $$100,000$ on their report. What can we say

about this adjustment?

A$)$ This is completely unacceptable. No view is worth $$100,000.$

B$)$ If the appraiser can find similar homes that recently sold with a similar view and if

they found homes on the same hill without the view that sold for less, then they

could conceivably use this logic as a justification for the valuation of the view.

C$)$ The appraiser must use the rigorous atheistic valuation formula in this case.

D$)$ The appraiser is free to use their gut feeling and personal opinion about the view.

$6$

$22.$ If the appraiser thought they were appraising a property that was owner occupied for a

cash$-$out refinance and if they discovered that it was actually a rental property, then what

action should the loan officer take when the appraiser alerts them of this significant fact?

A$)$ The loan officer should contact the borrower and inform them that they lied on the

loan application and that they will now call the Federal Bureau of Investigation to

turn in the borrower for loan fraud.

B$)$ The loan officer should call the borrower and express their discontent that they were

lied to$.$ They should then tell the borrower that the interest rate and fees are higher to

do a cash$-$out refinance on a rental property. Then tell the borrower that they can

either take the new deal or that the loan application and the relationship is cancelled.

C$)$ The loan officer should just try to ram this deal through and hope that the lender

doesn$$t catch this material fact.

D$)$ The loan officer should just use white out liquid and white out the check mark next

to the Tenant box & put an X on the Owner$-$Occupied box to save their commission.