A Defunct AMC’s Bond
What happens after you file a claim against a defunct AMC’s bond?
One appraiser has shared the response received from Western Surety Company, the company that issued the surety bond on TCValuations.
“Western Surety Company is in receipt of several claims to date. If the amount of claims exceeds the penal sum of the bond, Western Surety Company will be required to do a pro-rata distribution of funds or file an interpleader action. In an interpleader action, the court will decide the amount that is due each individual claimant and generally represents a pro-rata amount of each individual claim based on the total dollar value of all valid claims and total bond amount.
Claims against this surety bond cannot be satisfied on a first come first serve basis, therefore, the surety will generally wait 3-4 weeks after the last claim received to allow for other claims. To expedite the claims process, we will contact our principal and request a list of potential claimants in order to get an idea of the total amount that will be claimed.”
C. O. D. … Cash on Delivery
Remember the days, when you ordered something from a catalog and the postman brought it your door. You had to pay for it right then and there? It was simple and easy, no money, no package. Appraisers used to collect at the door, no money, no appraisal. Simple and easy.
It may be antiquated, but cash on delivery worked and still works today. Maybe it is time to get back to basics and require C.O.D again? Let the lender figure out how the AMC will get paid; it’s not the appraiser’s problem. Sure, we had a few bad checks, but the report was never delivered until the check was made good.
It is our problem when an AMC does not pay.
Giving credit to any company is a business decision. The terms of any credit given is also a business decision. Make sure you have done your due diligence when granting credit. It is OK to just say no, I will not give you credit. Protect yourself!
Another Lender Nailed for Mortgage Fraud!
Allied Home Mortgage is ordered to pay $296 million for widespread FHA Mortgage Fraud. Apparently this has been going on for over 10 years before they got caught. Once again, no prosecution, just a monetary fine… See the story here.