Effective January 1st, 2017 the State of Iowa has begun the regulation of appraisal management companies. Among other licensing qualifications and requirements, an AMC must also post an Iowa appraisal management company surety bond. The Iowa Division of Banking is the supervisory agency with which the bond must be filed. An "appraisal management company" under Iowa law is defined as "a person that oversees an appraiser panel of more than fifteen certified appraisers in this state or twenty-five or more certified or licensed appraisers nationally within a year, and that directly or indirectly performs appraisal management services for creditors or secondary mortgage market participants in connection with consumer credit transactions secured by the principal dwellings of Iowa consumers or securitizations of those transactions." (House File 2436). As in other states, parties affected by appraisal management companies voiced concerns about the integrity and independence of appraisers. As a result of these concerns, the state legislature responded with the the Iowa Appraisal Management Company Registration and Supervision Act". The new law obligates an AMC to certain standards of conduct, record keeping requirements and causes for disciplinary action against a registrant.
The Iowa appraisal management company surety bond must be written in the sum of $25,000 and issued by a surety company licensed to do business in the state. The obligation states that the principal must faithfully conform to and abide by the provisions of Iowa Code Chapters 543E and all applicable rules and regulations, and must satisfy any liabilities, damages, losses, or claims arising out of the appraisal management services performed by the appraisal management company involving real estate located in Iowa, suffered by the state of Iowa or any person(s) who may have a cause of action against the principal. The form is non-cumulative and may be canceled by the surety upon thirty days notice from the same. The surety bond and license materials must be filed with the state as follows:
Iowa Division of Banking
Appraisal Management Company Supervision
200 E. Grand Avenue, Suite 350
Des Moines, IA 50309
Iowa surety leader, Surety One, Inc. is a specialist in the bonding needs of the property appraisal, real estate and financial services sectors. Surety bonds and fidelity bonds needed by these professionals are available in ALL fifty states, Puerto Rico and the U.S. Virgin Islands. Call (800) 373-2804, email us at Underwriting@SuretyOne.com or download a surety bond application on this page.