Alaska Senate Bill 155 was signed into law in 2018 and became effective on January 1, 2019. The goal of the bill is to ensure that all Alaska appraisal management companies are adhering to state laws and to provide more regulation within the industry. The new registration process creates the requirement for appraisal management companies to maintain a $50,000 surety bond.
What is a real estate appraisal management company?
Also known as an AMC, an appraisal management company is the company that individual appraisers work for. When a mortgage lender requires real estate valuation services, the appraisal management company will choose an appraiser with local knowledge of the market. Once the property is properly appraised and the AMC delivers the appraisal report, the mortgage lender will determine whether or not they will extend a loan to the homeowner.
What is the registration process for Alaska appraisal management companies?
Although the law was enacted on January 1, the Department of Commerce, Community, and Economic Development Division of Corporations, Business, and Professional Licensing officially began accepting applications on March 1. The application (Form 08-4788) requires the following information and must be notarized at the time it is submitted.
- Names of all owners
- Name of controlling person (individual serving as the main contact point between the board and the company)
- The official address of the business
- Names and license numbers of all appraisers working for the company
Additional requirements to be submitted to the Department include an ownership certification form, a form granting authorization for release of records, and proof of a $50,000 surety bond. A $500 nonrefundable application fee and a $700 initial registration fee are also due when submitting application materials.
Once an application is submitted, it will be reviewed by the Board of Certified Real Estate Appraisers and, if approved, the appraisal management company will receive a license that is valid for two years.
Why do Alaska real estate appraisal management companies need to be bonded?
Alaska Senate Bill 155 requires all Real Estate Appraisal Management Companies to be bonded to guarantee they are complying with state laws. The bond amount is the maximum amount of money available to harmed parties if misconduct occurs on the part of the appraisal management company. The main goal of the bond is to financially protect both the state and the public if the AMC takes part in unethical activities.
How much does an Alaska AMC bond cost?
The cost of an Alaska AMC bond varies based on the applicant because the premium is primarily determined by the credit of all individuals with at least a 10% ownership stake in the company. Those considered highly qualified by an underwriter are typically approved for about 1-3% of the total bond amount, while riskier applicants may be approved at higher rates.
Need an Alaska Appraisal Management Company Surety Bond?
If you’re ready to get a free, no obligation quote on your Alaska appraisal management company bond, visit SuretyBonds.com or give us a call at 1 (800) 308-4358 to speak to an expert today!