For appraisers, one of the unwanted side effects of the ECOA is:

• A. Higher interest rates charged to borrowers
• B. Borrowers receive copies of appraisal reports, leading to phone calls from borrowers asking questions of appraisers
• C. Increased time spent on property inspections
• D. Requirement to disclose appraisal methods publicly

Answer: (B)

Under the Equal Credit Opportunity Act (ECOA), lenders must provide applicants with copies of appraisal reports. This transparency means that once the borrower receives the appraisal, they may review it and have questions about data, adjustments, or the reported value. That often leads to borrowers reaching out to the appraiser for clarification, which increases the appraiser’s time and effort for follow-up questions. The other options don’t fit ECOA’s effects: ECOA does not cause higher interest rates as a side effect of its disclosures, it does not require more property inspections, and it does not require appraisers to publicly disclose their appraisal methods.