Iowa House Bill 2436 now requires real estate appraisal management companies (AMCs) in the state of Iowa to obtain a $25,000 surety bond. On May 27, 2016 Governor Terry Branstad signed HB 2436 to take effect on January 1, 2017. The bond only relates to liabilities, losses or damages caused by a real estate appraisal management company during their service. The purpose of the bond is to protect anyone getting appraisals from the appraisal management companies if the regulations are not followed.
Appraisal management companies consist of any person who oversees more than 15 certified appraisers in Iowa or at least 25 appraisers nationally in a given year. All of the appraisers under the oversight of the owner must be certified. Federal regulations may be different than Iowa’s regulations so it is necessary to review Iowa’s laws and act according to them. All of the specific surety bond terms will be determined by the Superintendent of the Division of Banking if any damages do occur.
Bond Application Requirements for Iowa Appraisal Management Companies (AMC)
Applicants must file a surety bond with the Iowa Professional Licensing Bureau which is a bureau of the Division of Banking. The application requires, but is not limited to, the following information:
- The name, form of business entity and contact information of the applicant
- Information to establish the general size of the applicant’s appraisal panel, both in Iowa and nationally
- Certification that the applicant will follow all professional appraisal requirements
- Any fee to be paid which is decided by the administrator
- Any additional information that is reasonable
If you have any questions about regulations for becoming a real estate appraisal management company contact the Division of Banking. If you have any questions about the bond or think you need to be bonded for a real estate management company just head over to SuretyBonds.com. Our experts will answer any questions you might have.