If a lender learns that a real estate agent encouraged an appraiser to hit a specific value for a property, what can the lender do?

The lender can use the appraisal and close the loan if it can be documented that the appraisal does not materially misrepresent the value. This approach acknowledges the integrity and professionalism of the appraiser while addressing the situation involving the real estate agent.

In real estate transactions, maintaining the independence of appraisals is crucial for the fairness and transparency of the lending process. If the lender can prove that the appraised value accurately reflects the property's worth despite the agent's encouragement to influence the value, then they can proceed with the transaction. Documentation that confirms the accuracy of the appraisal alleviates concerns about improper influence.

This situation allows flexibility for lenders while ensuring that they follow ethical standards and regulations. It emphasizes the importance of substantiating the appraisal's validity rather than outright dismissing the appraisal due to potential outside pressures. In the context of this question, it highlights a balanced approach where due diligence must be observed without jumping to conclusions based solely on the agent's actions.