Can a borrower avoid liability for a loan based on a lender's failure to exercise due diligence by obtaining an appraisal?

In Fort William Credit Union v. McKillop,[9] J. deP. Wright J. of this court firmly rejected the argument that a borrower can avoid liability for a loan based on a lender’s failure to exercise due diligence by obtaining an appraisal. The trial judge held: I have similar reservations about the argument that the credit union failed to obtain a proper appraisal. Leaving aside the fact that the credit union did obtain an appraisal and that it was perfectly proper for the purpose for which it was intended, there was no requirement from CMHC that any form of appraisal be obtained and there was no requirement that the credit union obtain an appraisal for purposes of warning the borrowers that their security might not cover the loan. Whether the credit union chose to obtain an appraisal was up to the credit union. They chose to do so, simply as a fraud avoidance measure, not as a loan-security measure.