As of January 2015, all appraisal management companies (AMCs) in New Mexico are required to post a $25,000 surety bond according to new legislation. Prior to this revision, the New Mexico Regulation and Licensing Department required AMCs to secure a bond in the amount of $10,000. This increase was established in hopes to hold AMCs more accountable to the bond regulations and conditions they agreed upon and also reduce fraudulent behavior occurring among AMCs.
Along with the increased bond amount, corporate surety companies can now pay individuals filing a claim against the principal directly with the proper approval from the Board. Otherwise, all previous appraisal management company bond requirements have remained the same.
The principal is expected to follow all rules and regulations for this bond in a professional and ethical manner without the intent to commit deceitful business practices that could harm his or her clients. Failure to maintain a surety bond at all times while performing real estate appraisal may result in the revocation of the AMC registration. If the bond becomes ineffective or gets canceled before the designated date of expiration, the AMC should notify the Board. The AMC then has 40 days to provide proof of the obtainment of a new surety bond, otherwise it will become subject to revocation of registration.
If you find yourself falling under the category of needing a new surety bond of the updated amount, it’s highly recommended that you contact a surety specialist as soon as possible to avoid legal non-compliance. You can speak to a surety expert today at 1 (800) 308-4358 or submit a request online at suretybonds.com/quote for a free no obligation quote. For more information, visit our New Mexico AMC bond page.