That’s ludicrous. Banks are under no obligation to get an appraisal to make a loan. As a matter of fact, many loans go off without an appraisal.
Federal banking regulations have long required that if the primary purpose of a loan is a real estate related transaction, an appraisal is required. All federally related transactions (basically all real estate loans) having a transaction value of $1,000,000 or more shall require an appraisal prepared by a State certified appraiser. (12 CFR ยง 225.63). This regulation applies to all banks, whether the OCC, FDIC, or Federal Reserve is the primary Federal regulator.