Loan origination system upgrade was rolled out

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Question

Two days after the loan origination system upgrade was rolled out, field personnel reported that the appraisal download added the value derived from the cost approach to the market value field. Market value, not cost, is the basis for the loan to value ratio that determines the applicable pricing and underwriting guidelines. Since the two values are often the same, this was not caught during testing. The operations manager, who was the owner of that risk, implemented the risk response: rolling back the upgrade. Unfortunately, an alert regarding a new, stricter underwriting guideline was part of the upgrade and it will take at least 3 days to correct the appraisal issue, retest the upgrade, and distribute it to the field. What best describes this situation? Risk response plan Secondary risk Residual risk Workaround.

Reference no: EM133823684

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