West Virginia Mortgage Law Practice Test

All of the following are prohibited acts for mortgage licensees, EXCEPT:

1. Asking an appraiser to make corrections to errors in an appraisal report

2. Conducting business without a valid license

3. Offering loan terms not available

4. Obtaining property by fraud or misrepresentation

The correct answer is: Asking an appraiser to make corrections to errors in an appraisal report

The scenario describes a situation involving mortgage licensees and outlines prohibited acts. The correct response highlights that asking an appraiser to make corrections to errors in an appraisal report is not inherently prohibited. It is essential for the integrity of the appraisal process that errors are rectified, and asking for corrections can be a legitimate request, provided that it does not involve coercion or unethical influence. In contrast, the other provided options are clear violations of mortgage law. Conducting business without a valid license is illegal and undermines the regulatory framework designed to protect consumers. Offering loan terms that are not available can lead to deceptive practices, misleading clients, and creating an untrustworthy environment in mortgage transactions. Likewise, obtaining property through fraud or misrepresentation directly violates ethical and legal standards, reflecting serious misconduct within the real estate and mortgage industry. Thus, the distinction lies in the nature and intent behind the actions: legitimate requests for corrections are permissible, while the other acts directly compromise the legal and ethical obligations required of mortgage licensees.