Nationwide Mortgage Licensing System (NMLS) Practice Exam

The lender is ultimately responsible for the quality of an appraisal according to Fannie Mae. This responsibility stems from the lender's obligation to ensure that the property being financed meets the required standards for value and condition. Even though the appraisal is conducted by a licensed appraiser who provides a professional opinion on the property’s value, it is the lender who is tasked with reviewing the appraisal report and making sure it complies with all applicable guidelines and regulations.

Fannie Mae's guidelines emphasize that the lender must have processes in place to ensure the integrity and accuracy of the appraisal, as this directly impacts the lender’s risk in the mortgage transaction. Additionally, lenders are required to ensure that the appraiser is independent and has the necessary qualifications to produce an unbiased and reliable appraisal.

The other parties involved, such as the borrower and the mortgage broker, may have an interest in the appraisal process, but they do not hold the same level of responsibility as the lender. The borrower typically relies on the lender to provide a quality appraisal as part of the loan approval process, while the mortgage broker facilitates the transaction but does not have a direct role in the appraisal's quality assurance.