Federal Mortgage Law · 24% of the SAFE exammedium
Correct answer: Yes — threatening to withhold business to influence appraisal values is coercion
This is a clear violation. Threatening to withhold future business as retaliation for appraisal values constitutes coercion under Dodd-Frank Section 1472 and Reg Z Section 1026.42. The appraiser must be free to value the property based on market data alone, without fear of losing referrals. Coercion can be explicit (as here) or implicit ("your appraisals better start aligning with prices..."). Both are prohibited regardless of whether the appraiser actually changes the value.
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