As a direct result of the recent financial failure of appraisal management companies like Evaluation Solutions and ES Appraisal, the State of Washington recently enacted a new law raising the state’s AMC bond requirement from $25,000 to $100,000. As of July 28, 2013, all AMCs registered in Washington will be required to carry a bond in the new amount.
One of the purposes of the bond is to provide security for payments owed to appraisers by AMCs. If an AMC fails to pay an appraiser in accordance with Washington’s requirements, the appraiser then may have a claim against the AMC’s bond. The bonds also secure payment of fines and penalties that may be ordered by the state against an AMC. This bill resulted from efforts of the Appraisers’ Coalition of Washington.
AMCs doing business in Washington should not wait until the last moment before applying for a bond in the higher amount because it may be more difficult of some AMCs to qualify financially for the issuance of a $100,000 bond.
