Who conducted the 2015 study that indicated appraisers often place more weight on higher priced sales to meet the contract price?

• A. Fannie Mae and University of Cincinnati
• B. Freddie Mac and University of Cincinnati
• C. HUD and University of Cincinnati
• D. Fannie Mae and Freddie Mac

Answer: (A)

This item tests recognizing which group collaborated on the 2015 study that showed appraisers often weigh higher-priced comparable sales more heavily in order to meet the contract price. The study was a collaboration between Fannie Mae and the University of Cincinnati. This pairing is significant because Fannie Mae funds and analyzes appraisal practices to safeguard loan quality, while the University of Cincinnati provided the research analysis demonstrating how market pressure to hit a contract price can influence valuation decisions. The finding highlights why independence in the appraisal process matters and why adherence to appraisal standards is essential to prevent inflated valuations that don’t reflect true market value.