877-654-2327 All New Surety Bonds

877-930-8127 - Renewals Department
Surety1 was Founded in 2003.  Low-Cost Bond Provider.  Over 150,000 Happy Customers and Counting!   Find Your Bond >

New Law requires Appraisal Management Companies to get Surety Bond

Since appraisal management companies are now responsible for the super majority of appraisals being ordered through lenders for mortgage purposes due to HVCC. Currently, AMCs are not normally regulated institutions, the consumer is exposed more than ever to the potential for low quality appraisals, continuing to undermine the public trust in the appraisal profession. We suspect this trend has the potential to push errors and omissions insurance rates higher and provide more exposure to the mortgage lending system.

Appraisal management companies are becoming increasingly important because of sweeping changes to regulations for home valuations nationwide. The stricter regulations are geared toward boosting consumer safety and stabilizing the housing market.  Most of the new AMC legislation requires companies to make sure their appraisals are in line with the Uniform Standards of Professional Appraisal Practice. They are also responsible for ensuring they use certified and licensed appraisers only.

These bonds are currently required in 10 states: CA, OR, AK, TX, AZ, TN, NV,LA,UT, and NM.  The newest state to join is Arizona which passed Bill S 1351 in July 2010 to make this new requlation effective with their AMC application.  This new regulation is expected to spread through at least another 15-20 states before the end of the year.

Merchants Bonding Company, a standard bonding market, currently offers these $20,000 bonds at 1%, so it would be $200 permium per year.   As with any surety bonds, approval is dependent on company credit and the financial stregnth of the company.

If you have any questions please contact Christine Boscacci, she has been following this issue for the past several months ([email protected] or (877) 654-2327).  To apply for the bond with us please click here and select Appraisal Management Company (AMC) as the bond type.

For further information on the subject please refer to this article by Jonathan Miller with Matrix

Apply to Get Your Surety Bond Now

Get started with the bond application process today.

Most bonds are fully processed within 1-2 business days. In some cases, you'll hear back from Surety1 within hours!

1 thought on “New Law requires Appraisal Management Companies to get Surety Bond”

  1. Surety1 says:

    And a big Sacramento Thanks for reading!

Leave a Reply

Your email address will not be published. Required fields are marked *

1. Apply Online Using our Free & Secure Application 2. Get Your Free Quote Applications are No-Obligation 3. Get Your Bond Most Bonds are Approved in 1-2 Business Days