Effective March 22nd, 2016 an Idaho Appraisal Management Company surety bond is one of the statutory requirements for operating and AMC in the state. The state legislature’s purpose was to create an oversightsystem for appraisal managers. The house committee’s stated, “In most residential real estate transactions, the lender must have an independent appraisal of the property to ensure an accurate, objective valuation. An AMC is often the entity that provides this independence, contracting with an appraiser to perform the appraisal. Without this legislation in place by December of 2018, lenders in federally-related residential real estate transactions such as the Veteran’s Administration, Fannie Mae and others, will not be able to use most AMC’s. This could result in disruption and delays to consumers, realtors, appraisers and lenders in residential real estate loan transactions.” Idaho is one of the last states to pass licensing or registration requirements for these enterprises.
The law states that an applicant for issuance or renewal of an appraisal management company registration is required to file with the Real Estate Appraiser Board an Idaho appraisal management company surety bond with a corporate surety authorized to do business in Idaho. The Idaho appraisal management company surety bond must be written in the amount of twenty-five thousand dollars ($25,000). The obligation is that payment(s) shall be made for all amounts adjudged by a court of competent jurisdiction owed to persons that have been injured by the appraisal management company’s failure to comply with this state laws. The name of the corporate surety and bond number must be given to persons or their insurers who provide written evidence to the Board that they possess an adjudicated and unsatisfied judgment against the AMC. The Board can demand a copy of any surety bond(s) in effect upon written request of the same. A person or the Board may bring suit against the surety bond. An action against the surety bond must be commenced within one hundred twenty (120) days after the appraisal management company failed to comply with regulations.
The surety bond wording and format is presumably being drafted. Application materials and surety bond may be obtain from and submitted to:
Idaho Bureau of Occupational Licenses
Appraisal Management Company Surety Bond & Application
PO Box 83720
Boise, Idaho 83720-0063
Idaho surety leader, Surety One, Inc. is a specialist in the bonding needs of the property appraisal and real estate sectors. We offer both surety and fidelity bonds needed by these professionals in ALL fifty states, Puerto Rico and the U.S. Virgin Islands. Visit us at SuretyOne.com, call (800) 373-2804, or email us at Underwriting@SuretyOne.com for an Idaho appraisal management company surety bond application or information on ANY surety bonding need.
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