Nationwide Mortgage Licensing System (NMLS) Practice Exam

Which law entitles an applicant to a copy of their property appraisal report?

1. Homeowner's Protection Act

2. The Fair and Accurate Credit Transaction Act

3. Truth-in-Lending

4. The Equal Credit Opportunity Act

The correct answer is: The Equal Credit Opportunity Act

The correct choice is the Homeowner's Protection Act. This legislation specifically grants homeowners the right to receive a copy of their property appraisal report when applying for a mortgage. It ensures transparency in the lending process, allowing borrowers to understand how their property's value has been assessed and to verify that the appraisal was conducted professionally and impartially. By allowing applicants access to their appraisal reports, the law aims to protect consumers from any potential discrepancies that may impact their loan terms or the approval process. This transparency is essential in fostering trust between lenders and borrowers. Understanding the property value can also empower individuals to make informed decisions regarding their financing options. The other options relate to different protections and rights in the lending process, but they do not specifically mandate that applicants receive a copy of their property appraisal report. The Fair and Accurate Credit Transactions Act, for example, primarily deals with consumer credit reporting, while the Truth-in-Lending Act focuses on the disclosure of loan terms and costs. The Equal Credit Opportunity Act prohibits discrimination in lending based on certain protected characteristics but does not pertain to appraisal reports.