What is an Iowa Appraisal Management Company Bond?
Starting an Appraisal Management Company? If so, you need this bond!
A surety bond is a prerequisite for license applicants in order to financially compensate the appraisal management company’s clients in case it fails to perform its duties.
An appraisal management company’s duties include, but are not limited to, the following:
- Performs appraisal management services for creditors or secondary mortgage market participants in connection with consumer credit
- Oversees a panel of 15 or more certified appraisers within the State of Iowa, or more than 25 licensed appraisers all over the nation within 1 year
This requirement is in line with Section 543E.19 of the Iowa Code and is enforced by the Superintendent of the Division of Banking of the Iowa Department of Commerce.
What is the bond amount?
The bond amount is $ 25,000.
Those who have excellent credit scores may be eligible to pay a low bond premium or just 1% of the bond amount.
Get your FREE quote today in order to determine what you have to pay!
What are the Appraisal Management Company bond conditions?
- The bond should be issued by a corporate surety who is authorized to conduct business in Iowa such as Surety Bond Authority
- The surety bond should be written on the form prescribed by the Superintendent of the Division of Banking of the Iowa Department of Commerce
- The registered appraisal management company is obligated to comply with the provisions of Section 543E of the Iowa Code, the rules and regulations of Division of Banking of the Iowa Department of Commerce, and all the other applicable rules
- If the registered appraisal management company commits a valid violation, the aggrieved party will be eligible to file a claim on the surety bond
- The surety bond will remain valid until canceled. In case of cancellation, a 30-day notice is required
How can I obtain this type of bond?
In order to secure this type of bond, the registered Appraisal Management Company or registration applicant must seek the assistance of a surety bond company.
You will first be asked to apply for this bond.
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
If you’re ready to start on your bond, Call HERE!