On December 20, 2019, the Council of the District of Columbia passed Washington D.C. Act 23-117. DC Law 23-29 mandates that the Department of Insurance, Securities and Banking will provide temporary licensing requirements for appraisal management entities. Appraisal management companies (AMCs) must submit an application to the Department, pay a fee, and purchase a $25,000 surety bond.
The Department of Insurance, Securities, and Banking will impose requirements for AMCs as an emergency solution. The District has yet to find a permanent obligee for AMCs. Therefore, the Appraisal Management Company Temporary Act of 2019 is in effect until July 8, 2020.
What is an appraisal management company?
The act defines appraisal management companies as “a person or group of persons that provides appraisal management services to the public.” These companies estimate the value of real estate properties before loans are offered to potential homebuyers.
Why do appraisal management companies need surety bonds?
The District of Columbia requires surety bonds from appraisal management companies to ensure appraisal professionals are operating within their established legal parameters. AMCs engaging in practices such as making a false statement when procuring a license renewal, withholding payment, or acting in an unprofessional or improper manner may result in a claim against the company’s surety bond. These bonds hold AMCs accountable for their actions when they do not comply with regulations stipulated by the District.
How much will a DC appraisal management company bond cost?
A surety bond for an appraisal management company in Washington DC will cost just $250 for new applicants. These bonds are not subject to underwriting, meaning the surety company backing the bond will apply this rate to all new AMCs. Applicants can also save 25% on their renewal cost when opting for a multi-year term upfront.
How to become a licensed DC appraiser
To become a licensed DC appraiser, an applicant must submit the Appraisal Management Company Registration Application along with the following documents to the Department of Insurance, Securities, and Banking:
- Non-refundable check or money order in the amount of $1,300 made payable to the DC Treasurer
- Resolution or other documentation giving the controlling person the authority to submit the application on behalf of the company
- Copy of a valid driver’s license, state-issued identification, passport, or military identification
- Registration certificate issued by the Department of Consumer and Regulatory Affairs
- Surety bond in the amount of $25,000
- Copy of the applicant’s most recent unaudited statement to ensure they meet the financial requirements
An applicant must designate a single controlling person to complete the application on behalf of the appraisal management company. Each individual with over a ten percent ownership interest in the company is obligated to submit Attachment A, which can be found on page 7 of the application packet. Additionally, an applicant must have good moral character and give consent to service of process within the application.
Once the application is complete, all required materials should be delivered by mail to the following address:
Department of Insurance, Securities, and Banking
Banking Bureau, P.O. Box 96378
Washington, DC 20090-6378
Ready to get bonded as an appraisal management company in Washington DC?
The SuretyBonds.com team of experts is dedicated to providing customers with the best service and the fastest bonding process available. To buy your appraisal management company bond instantly online, visit our appraisal management company bond page, or call 1 (800) 308-4358 for answers to any questions you may have about surety bonds.