What is a Colorado Appraisal Management Company Bond?
A simple guide to the AMC bond requirements, conditions, and purpose!
Starting an Appraisal Management Company (AMC) in the State of Colorado will require a surety bond. The bond is a license and permit requirement that is needed to ensure the following:
- That the AMC will strictly comply with the provisions of the Colorado Appraisal Management Company Licensing Act, as well as the statutory requirements of the state
- Protect the aggrieved party in case of a violation committed by the AMC
An Appraisal Management Company is an entity that provides mortgage lenders a complete written or oral analysis of a particular real estate’s value.
What is the bond amount?
The bond amount is $25,000, made payable to the State of Colorado.
The bond premium varies. Those who have an excellent credit score may qualify for a very low bond premium or just 1% of the bond amount!
If you want to know what’s yours, get your FREE quote here today!
What are the bond conditions?
- The bond will be between these parties:
Principal – The Appraisal Management Company
Obligee – The State of Colorado
Surety – surety bond company
- The surety bond is required for the initial application activation, renewal, or reinstatement of an AMC’s license.
- In the case of violation of any of the rules, regulations, and laws that govern the principal, the obligee will be eligible to file a claim for the benefit of the person that’s been harmed by the violation. Examples of such violations include:
- Failure to disclose the appraiser fee in the report for a particular assignment paid by the AMC
- The principal has committed misconduct that is part of the grounds for license revocation or denial
- The bond should have continuous coverage until canceled. In the case of cancellation, a 30-day notice is required.
How do I obtain this type of bond?
First, you must determine if you are applying for the right kind of bond that you need. If you’re not 100% sure, talk to us. We will guide you through it.
Once you are confident that the AMC bond is for you, you can submit an application to a reputable surety company.
During the application process, you will be asked about some basic information, as well as important details needed for the underwriting procedure.
An underwriter will check your financial history, company performance history, and your credit score. Once this has been satisfied, we will immediately execute the bond and send it to you.
What are the other Appraisal Management Company license requirements?
- The AMC must first register with the Colorado Secretary of State
- The trade name should be registered with the Colorado Secretary of State as well
- The controlling appraiser and any member who has 10% or more ownership interest in the AMC must submit a set of fingerprints
- Submit a completed paper or online application
- Pay the necessary fee of $3,858.00
Ready to apply? Please go here!