Wednesday, October 16, 2013

Appraisal Management Company (AMC) License Bonds. Are They Working?

Current AMC Bond Requirements

Eighteen states now require AMCs to carry surety bonds to be properly registered to operate in those states.  The required bond amounts vary from $10,000 in New Mexico to $100,000 in Washington.  A list at the end of this post shows the required bond amounts in each state.
Are AMC Bonds Working?


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Wednesday, October 9, 2013

FDIC and "Regulatory Claims" Exclusions in Appraiser E&O Policies

Many appraisers don't know about or don't understand the new FDIC and "regulatory agency" exclusions found in many appraiser E&O policies.  Why is it relevant to know if your policy has an FDIC or regulatory agency exclusion of some sort?  The main reason is because the FDIC sues appraisers for professional negligence -- such lawsuits are discussed in prior posts: here and here.

How do you determine if a policy being offered to you contains an FDIC exclusion? 

Not all policies contain FDIC-related exclusions.  For some of the insurance providers below, it depends on the state or dates of the appraiser's coverage.  Other insurance providers do not include any FDIC or regulatory claims exclusions in any policies.  No policies sold by LIA in its appraiser E&O program contain any FDIC-related exclusions; and there are policies available in other programs such as Intercorp and FREA, which do not contain the exclusions.  For those policies which may include FDIC or regulatory claims exclusions, these are the provisions to look for -- they are usually added as endorsements to the policy:

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