Overview of Appraisal Management Company Bond Requirements
Over 20 states require appraisal management company license applicants to obtain a bond in order to operate lawfully. Appraisal management companies are the middlemen between mortgage lenders and appraisers, and are required to obtain a bond as a guarantee for their ongoing compliance with state laws.
If an AMC violates the law, a complaint can be filed against it with the regulatory agency which issues licenses to these companies. In turn, that agency may decide to file a claim against the bond in order to secure compensation for any harms or losses the company has created as a result of its violation of state statutes.
Such compensation can be as high as the full amount of the surety bond, also known as the penal sum of the bond.
Currently, all of the following states require AMCs to get bonded when applying for a license: Alabama, Arizona, Arkansas, Colorado, Georgia, Hawaii, Idaho, Illinois, Iowa, Louisiana, Mississippi, Missouri, Nebraska, New Mexico, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Utah, Virginia, Washington, West Virginia
For more information about how bonds function and why they are required, see our ‘What is a surety bond’ guide!
Read on to find out more about the cost of these bonds and how to get your bond today.
For any additional questions about these bonds, or questions about states’ AMC bonding requirements, call us at 866.450.3412!
Bond Amounts and Cost
The bond amount is the total dollar amount of compensation that a bond provides coverage for. So, if a state requires you to obtain a $50,000 bond, that’s the total possible amount of compensation the surety may extend to one or several claimants under a surety bond claim. This is not the same as the cost of your bond - the price you pay to get bonded.
What follows is a list of the bond amounts for all states that require an appraisal management bond. For most states, AMC bond amounts around the country are between $20,000 and $25,000. See below for more information about the cost of your bond.
- Alabama - $25,000
- Arizona - $20,000
- Arkansas - $20,000
- Colorado - $25,000
- Georgia - $20,000
- Hawaii - $25,000
- Idaho - $25,000
- Illinois - $25,000
- Iowa - $25,000
- Louisiana - $20,000
- Mississippi - $20,000
- Missouri - $20,000
- Nebraska - $25,000
- New Mexico - $25,000
- North Carolina - $25,000
- Oregon - $25,000
- Pennsylvania - $20,000
- South Dakota - $25,000
- Tennessee - $20,000
- Utah - $25,000
- Virginia - $100,000
- Washington - $100,000
- West Virginia - $50,000
- Wyoming - $25,000
To get bonded you need to pay a rate to the surety company which issues the bond. The cost of your bond is determined by the surety on the basis of your personal credit score, and other personal financials. The surety uses this information to assess the appropriate rate at which it can bond the applicant.
Generally, applicants with high credit scores, those above 700 FICO, are offered low rates on their bonds. For such applicants, rates in this type of bond can be as low as .75% to 2.5% of the total bond amount.
Get a free and exact quote on your bond by completing our bond application form. There are no obligations attached to completing the form, and we will provide you with the lowest possible rate we have access to.
Getting Bonded With Bad Credit
If you need this type of bond but have a low credit score, don’t worry!
Our specially designed Bad Credit Program allows those applicants whose credit scores are beneath the requirements for standard market rates to get bonded, though at slightly higher rates. This is because sureties must make up for the increased risk that comes with bonding applicants with low or nonexistent credit.
Exact rates for such bonds are determined on an individual basis, so make sure to check the program page for more information, and to request a quote on your bond.
Get an Appraisal Management Company Bond Today!
Apply for your bond by completing our bond form. We will then provide you with a free quote, as well as full information regarding completing the application process.
As soon as we have your complete application, it will take about two days to process it and have your bond issued. We will then forward it to you via email as well as send you the original via standard mail.
Give us a call at 866.450.3412 if you want to know more about the bonding requirements for appraisal management companies in your state!