What is the PLM's role in appraisal independence?

• A. To select the appraiser and set the appraisal fee
• B. To ensure appraisals are unbiased and not influenced by the lender; PLM reviews appraisals for integrity
• C. To guarantee the appraisal value matches the sale price
• D. To approve or deny appraisals based on credit

Answer: (B)

Appraisal independence means the appraiser’s value opinion must be objective and not affected by the lender. The PLM protects this by ensuring appraisals are unbiased and by reviewing them for integrity, looking for signs of improper lender influence or conflicts. This oversight helps maintain a fair, market-based valuation and keeps the process compliant with regulations.

While selecting an appraiser or setting fees can be part of the workflow, the essential role here is preserving independence and objectivity in the appraisal. Valuation should not be forced to align with the sale price, and appraisal outcomes aren’t determined by the borrower’s credit; those elements belong to other parts of the process.