AMCs Renewal: Two Years Later
- Hybrid Assignments, the Consequences - February 7, 2019
- Bankers Concerned About Appraisals - October 18, 2017
- Third Party Blues - July 19, 2017
AMCs procrastinated or missed the renewal period
We started registering AMCs about this time back in 2013. It was a slow roll from the nascent 9 applications received in March of 2013 to a peak of 42 applications received in August 2013 just ahead of the deadline to register.
Since that time the number of AMCs in Illinois has ebbed and flowed. At one point we had 192. As of this writing, we stand at 155. Nationwide there are less than 700 AMC entities. The universe is small.
We’ve already completed our first renewal that ended on December 31, 2014. Like appraisers, many AMCs procrastinated or missed the renewal period completely. Some ended up renewing late and paid the $500 late fee on top of the $4,000 renewal. A few complained about the $4,000 renewal fee.
“You’re the highest in the country!”
Our renewal fee works out to be $2,000 per year (2 year cycle). There are five states that have renewal fees higher than Illinois on a per year basis.
Why aren’t all the states charging the same?
States charge what they need in order to recover expenses associated with their programs. Appraiser licensing fees vary from state-to-state. So do AMC fees. Our needs differ from Vermont and Texas. Regulation costs money and every jurisdiction knows what it needs to maintain the integrity of a program.
What about the surety bond?
There are over 20 states with some sort of bond in place. In Illinois, the bond is $25,000. Three states have $100,000 bonds and Kentucky has a recovery fund in place of a bond. The remaining states with bonds have face amounts of $20,000 or $25,000. About 14 jurisdictions have no surety bond requirement. States with bonds vary with regard to the bond’s use. In Illinois, the bond is used exclusively to recover fines. In some states the bond can be tapped by consumers, appraisers, or anyone with a claim.
Illinois may be revisiting the efficacy of the surety bond next year.
By Brian Weaver, Coordinator Editor of IllinoisAppraiser, Appraisal Management Company Coordinator for the Illinois Department of Financial and Professional Regulation (IDFPR) – Illinois Appraiser Newsletters – Volume 8, Issue 2