An after affect of the great recession was that Appraisal Management Companies (AMCs) attracted attention from the government. As a reuslt, many states now require AMC’s to post Appraisal Management Company Surety Bonds. There have been drastic changes to regulations for home valuations across the country. These regulations are aimed at boosting consumer safety and stabilizing the housing market. Most of the new AMC legislation requires companies to ensure their appraisals are in comply with the Uniform Standards of Professional Appraisal Practice. The management companies are responsible for only using certified and licensed appraisers.
In the past, AMCs were not regulated institutions; the consumer was exposed to the potential for low quality appraisals. This lead to the public’s lack of trust in the appraisal profession. For this reason, state governments are starting to require appraisal management companies to be bonded. The bond guarantees they will abide by all applicable laws and regulations in the state they place appraisers in.
An appraisal management company (AMC) is a business that manages a network of certified and licensed appraisers. A mortgage or lending institution would hire an AMC to find qualified appraisers. The AMC recruits, qualifies, verifies licenses, and negotiates fees a network of third-party appraisers. It also involves ongoing quality control of the appraisal process. In short, an AMC is an outsourcing option for the mortgage lenders.
Unlike insurance, the bond is in place to protect the public from you. If there is a claim placed on your bond and you are found at fault the surety company will pay out. However, you will have to pay them back.
Surety Solutions Insurance Services, Inc. (Surety1) provides these bonds in all the states required at attractive rates. Simply complete our easy to navigate, online application and within 1 business day one of our surety bond agents will contact you with a firm quote. If you need bonds in more than one state, you only need to complete the application once and when contacted by an agent, let them know what other states you need to get bonded in.
Surety1 has been a premier provider of surety bods nationwide since 2003. The company is an independent insurance brokerage, specializing in surety bonds only. Surety1 represents over a dozen “A” rate surety bond companies and it maintains an A+ rating by the Better Business Bureau.