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Oregon Bulletin

February 1, 2012

 

Appraiser Certification and Licensure Board
Chapter 161

Rule Caption: Temporary rule adopting 2012–2013 Edition of Uniform Standards of Professional Appraisal Practice (USPAP).

Adm. Order No.: ACLB 4-2011(Temp)

Filed with Sec. of State: 12-22-2011

Certified to be Effective: 1-1-12 thru 6-27-12

Notice Publication Date:

Rules Amended: 161-002-0000, 161-025-0060

Subject: Amend Oregon Administrative Rules 161, division 002, rule 0000 regarding definitions; and division 025, rule 0060 regarding Appraisal Standards and USPAP.

Rules Coordinator: Karen Turnbow—(503) 485-2555

161-002-0000

Definitions

As used in OAR 161-001-0005 to 161-050-0050, the following terms (whether capitalized or not) shall have the following meanings:

(1) “Accredited College or University” means a college or university that is accredited by the Commission on Colleges, a regional or national accreditation association, or by an accrediting agency that is recognized by the U.S. Secretary of Education.

(2) “Administrator” means the administrator of the Board appointed by the Board.

(3) “Affiliate” means a business organization sharing with a financial institution or insurance company some aspect of common ownership and control.

(4) “Appraisal” or “Real Estate Appraisal” means “appraisal” as defined in USPAP.

(5) “Appraisal Foundation” means the Appraisal Foundation established on November 30, 1987, as a not-for-profit corporation under the laws of Illinois.

(6) “Appraisal Report” means “report” as defined in USPAP.

(7) “Appraiser Assistant” or “AA” means a person who is not licensed or certified as an appraiser, but is registered as an appraiser assistant under ORS 674.310, and who assists with real estate appraisal activity under the direct supervision of a certified or licensed appraiser.

(8) “Appraisal Subcommittee” or “ASC” means the Appraisal Subcommittee of the Federal Financial Institutions Examination Council (FFIEC) established pursuant to the Federal Act.

(9) “Board” or “ACLB” means the Appraiser Certification and Licensure Board established under ORS Chapter 674.

(10) “Certificate” means the document issued by the Board indicating that the person named thereon has satisfied the requirements for certification as a state certified residential or state certified general appraiser.

(11) “Classroom hour” as used in reference to qualifying and continuing education means 50 minutes out of each 60 minute segment.

(12) “Completion” means interpreting, analyzing and reconciling data or compiled data, including reviewing and adopting another person’s interpretations and reconciliations as one’s own.

(13) “Complex one-to-four family residential property appraisal” means an appraisal in which the property to be appraised, market conditions, or form of ownership is atypical. For example, atypical factors may include, but are not limited to:

(a) Architectural style;

(b) Age of improvements;

(c) Size of improvements;

(d) Size of lot;

(e) Neighborhood land use;

(f) Potential environmental hazard liability;

(g) Property interests;

(h) Limited readily available comparable sales data; or

(i) Other unusual factors.

(14) “Continuing Education” means education that is creditable toward the education requirements that must be satisfied to renew a license, certificate or appraiser assistant registration.

(15) “Direct Supervision” of an appraiser assistant means:

(a) Disclosing in the appraisal report that the supervising appraiser has inspected the subject property both inside and out, and has made an exterior inspection of all comparables relied upon in the appraisal or disclose that the supervising appraiser did not inspect the subject property both inside and out, and did not inspect the exterior of comparables relied upon in the appraisal; and

(b) Reviewing the appraiser assistant’s appraisal report(s) to ensure research of general and specific data has been adequately conducted and properly reported, application of appraisal principles and methodologies has been properly applied, that any analysis is sound and adequately reported, and that any analysis, opinions, or conclusions are adequately developed and reported so that the appraisal report is not misleading; and

(c) Reviewing the appraiser assistant’s work product and discussing with the appraiser assistant any edits, corrections or modifications that need to be made to that work product to satisfy OAR 161-002-0000(14)(b); and

(d) Accepting sole and total responsibility for the appraisal report by signing the appraisal report and certifying that the appraisal report has been prepared in compliance with the current edition of the Uniform Standards of Professional Appraisal Practice.

(16) “Federal Act” means Title XI of the Federal Financial Institutions Reform, Recovery and Enforcement Act of 1989 (12 U.S.C 3310 et seq.).

(17) “Federal Financial Institution Regulatory Agency” means:

(a) The Board of Governors of the Federal Reserve System;

(b) The Federal Deposit Insurance Corporation;

(c) The Office of the Comptroller of the Currency;

(d) The Office of Thrift Supervision; or

(e) The National Credit Union Administration.

(18) “Financial Institution” means an insured depository institution as defined in section 3 of the Federal Deposit Insurance Act or an insured credit union as defined in section 101 of the Federal Credit Union Act.

(19) “Good Standing” means the status of a person whose license, certificate or registration is not currently suspended or been revoked.

(20) “Issuance” means the act of communicating the opinion of value either in writing or orally.

(21) “License” means the document issued by the Board indicating that the person named thereon has satisfied all requirements for licensure as a state licensed appraiser.

(22) “Licensee” means any person who holds an active or inactive Oregon appraiser license, certified residential appraiser certificate, or certified general appraiser certificate.

(23) “Mortgage banker” has the meaning defined in ORS 59.840.

(24) “Non-residential” appraising means to render a value on real property other than one-to-four family residential properties.

(25) “One-to-four family residential property” means a property that includes one to four residential units and is residential in character, i.e., zoning, land use.

(26) “Preparation” means compiling data, including reviewing and adopting such compiled data as one’s own.

(27) “Prerequisite education” means the initial qualifying educational requirements to become licensed or certified with the Board.

(28) “Professional real estate activity” has the meaning defined in ORS 696.010.

(29) “Qualifying Education” means education that is creditable toward the education requirements for initial licensure or certification under one or more of the three real estate appraiser classifications.

(30) “Real estate appraisal activity” has the meaning defined in ORS 674.100.

(31) “Real Estate” or “Real Property” means an identified parcel or tract of land, together with any improvements, that includes easements, rights-of-way, undivided or future interests or similar rights in a tract of land, but does not include mineral rights, timber rights, growing crops, water rights or similar interests severable from the land when the transaction does not involve the associated parcel or tract of land.

(32) “State Certified General Appraiser or “SCGA” means an individual who has been certified as a state certified general appraiser by the Board.

(33) “State Certified Residential Appraiser or “SCRA” means an individual who has been certified as a state certified residential appraiser by the Board.

(34) “State Licensed Appraiser or “SLA” means an individual who has been licensed as a state licensed appraiser by the Board.

(35) “Subdivision” means either an act of subdividing land or an area or a tract of land subdivided to create four or more lots within a calendar year.

(36) “Supervising Appraiser” means a licensee who is directly supervising appraiser assistants pursuant to OAR 161-025-0025.

(37) “Supervising Appraiser Endorsement” means the document issued by the Board indicating that the licensee named thereon has satisfied all requirements of OAR 161-010-0085 to be a Supervising Appraiser.

(38) “Transaction Value” means:

(a) For loans or other extensions of credit, the amount of the loan or extension of credit; and

(b) For sales, leases, purchases and investments in or exchange of real property, the market value of the real property interest involved; and

(c) For the pooling of loans or interest in real property for resale or purchase, the amount of the loan or market value of the real property calculated with respect to each such loan or interest in real property.

(d) For determinations of the transaction value of real property or interests in real property in circumstances other than described in the proceeding (a) to (c) of this section, the market value of the real property interest involved.

(e) In condemnation or partial taking actions, the transaction value is deemed to be the value of the larger parcel before the taking.

(39) “Uniform Standards of Professional Appraisal Practice” or “USPAP” means the standards adopted and published by the Appraisal Standards Board of the Appraisal Foundation dated April 27, 1987, as amended January 1, 2012.

(40) “Workfile” means “workfile” as defined in USPAP.

Stat. Auth.: ORS 674.305 & 674.310

Stats. Implemented: ORS 674

Hist.: ACLB 2-1991(Temp), f. & cert. ef. 7-1-91; ACLB 7-1991, f. & cert. ef. 12-23-91; ACLB 1-1993(Temp), f. & cert. ef. 3-3-93; ACLB 1-1994, f. & cert. ef. 2-1-94, Renumbered from 161-010-0000; ACLB 4-1994, f. & cert. ef. 7-27-94; ACLB 4-1994, f. & cert. ef. 7-27-94; ACLB 2-1996, f. & cert. ef. 2-13-96; ACLB 1-1997(Temp), f. 10-13-97, cert. ef. 1-1-98; ACLB 1-1998, f. 6-24-98, cert. ef. 7-1-98; ACLB 1-1999, f. 1-28-99, cert. ef. 3-31-99; ACLB 1-2000, f. & cert. ef. 2-29-00; ACLB 1-2001(Temp), f. & cert. ef. 1-26-01 thru 7-25-01; ACLB 2-2001, f. 4-11-01, cert. ef. 4-12-01; ACLB 3-2001(Temp), f. & cert. ef. 7-12-01 thru 1-8-02; ACLB 1-2002, f. & cert. ef. 2-26-02; ALCB 2-2002, f. & cert. ef. 5-30-02; ACLB 2-2003, f. & cert. ef. 1-27-03; ACLB 1-2004, f. & cert. ef. 2-3-04; ACLB 2-2004, f. 5-25-04, cert. ef. 6-1-04; ACLB 1-2005, f. & cert. ef. 1-12-04; ACLB 4-2005, f. & cert. ef. 11-2-05; ACLB 1-2006(Temp), f. 6-29-06, cert. ef. 7-1-06 thru 12-28-06; ACLB 2-2006, f. & cert. ef. 7-26-06; ACLB 5-2007(Temp), f. 11-1-07, cert. ef. 1-1-08 thru 6-27-08; ACLB 1-2008, f. & cert. ef. 5-13-08; ACLB 3-2008, f. & cert. ef. 8-13-08; ACLB 2-2009(Temp), f. 1-28-09, cert. ef. 1-30-09 thru 7-28-09; Administrative correction 8-21-09; ACLB 4-2009, f. & cert. ef. 10-27-09; ACLB 5-2009(Temp), f. 12-15-09, cert. ef. 1-1-10 thru 6-27-10; ACLB 2-2010, f. & cert. ef. 4-23-10; ACLB 3-2011, f. & cert. ef. 11-17-11; ACLB 4-2011(Temp), f. 12-22-11, cert. ef. 1-1-12 thru 6-27-12

161-025-0060

Appraisal Standards and USPAP

(1) All licensees must develop and communicate each appraisal assignment in compliance with these administrative rules and USPAP.

(2) A licensee employed by a group or organization that conducts itself in a manner that does not conform to USPAP Standards must take steps that are appropriate under the circumstances to ensure compliance with the Standards.

(3) All licensees must certify to what extent they personally inspected the property that is the subject of the appraisal assignment. Each report must clearly state that the subject property was: inspected both inside and out; inspected from the exterior only; or was not personally inspected by the licensee.

(4) In addition to certifying as to the extent of the subject’s inspection, all licensees must also certify to what extent each of the comparable sales relied upon in the appraisal were personally inspected.

(5) All licensees must disclose in all appraisal reports whether the comparable sales analyzed in the appraisal report were or were not confirmed by a party to the transaction or an agent or representative of a party to the transaction.

(6) All licensees testifying or presenting evidence in an administrative or judicial proceeding must base their testimony or evidence only upon a written summary or self-contained appraisal report in compliance with USPAP, reflecting a report date that precedes the date of testimony, unless such testimony is being compelled by legal subpoena.

(7) The “Uniform Standards of Professional Appraisal Practice”, 2012-2013 Edition, approved and adopted by the Appraisal Standards Board of the Appraisal Foundation, dated April 27, 1987, as amended on January 1, 2012, are incorporated into the Administrative Rules of the Appraiser Certification and Licensure Board as the standards of professional conduct which shall guide the behavior of licensed and certified appraisers in the State of Oregon. Copies of the Uniform Standards of Professional Appraisal Practice may be obtained from the Appraisal Foundation located at 1029 Vermont Avenue, N.W., Suite 900, Washington D.C. 20005-3517.

(8) All licensees must list their certificate or license number and expiration date in each appraisal report.

(9) All licensees must comply with USPAP in all valuation activity, unless such valuation activity qualifies as an exclusion to real estate appraisal activity under ORS 674.100(2)(h).

(10) Notwithstanding any other provision of these rules, a licensee acting in one of the following capacities is not subject to the requirements of Standard 3 of USPAP when examining an appraisal report and workfile as part of an official investigation being conducted by the Board:

(a) Board member;

(b) Employee; or

(c) Contractor or volunteer serving at the request of the Board.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 674.305(8) & 674.310

Stats. Implemented: ORS 674

Hist.: ACLB 1-1992(Temp), f. & cert. ef. 1-23-92; ACLB 2-1992, f. & cert. ef. 4-30-92; ACLB 4-1993(Temp), f. & cert. ef. 6-25-93; ACLB 1-1994, f. & cert. ef. 2-1-94; ACLB 4-1994, f. & cert. ef. 7-27-1994; ACLB 2-1996, f. & cert. ef. 2-13-96; ACLB 1-1997(Temp), f. 10-13-97, cert. ef. 1-1-98; ACLB 1-1998, f. 6-24-98, cert. ef. 7-1-89; ACLB 1-1999, f. 1-28-99, cert. ef. 3-31-99; ACLB 3-1999, f. 9-23-99, cert. ef. 1-1-00; ACLB 1-2000, f. & cert. ef. 2-29-00; ACLB 3-2000(Temp), f. 11-9-00, cert. ef. 11-9-00 thru 5-8-01; ACLB 1-2001(Temp), f. & cert. ef. 1-26-01 thru 7-25-01; ACLB 2-2001, f. 4-11-01, cert. ef. 4-12-01; ACLB 3-2001(Temp), f. & cert. ef. 7-12-01 thru 1-8-02; ACLB 1-2002, f. & cert. ef. 2-26-02; ALCB 2-2002, f. & cert. ef. 5-30-02; ACLB 2-2003, f. & cert. ef. 1-27-03; ACLB 1-2004, f. & cert. ef. 2-3-04; ACLB 1-2005, f. & cert. ef. 1-12-04; ACLB 4-2005, f. & cert. ef. 11-2-05; ACLB 1-2006(Temp), f. 6-29-06, cert. ef. 7-1-06 thru 12-28-06; ACLB 2-2006, f. & cert. ef. 7-26-06; ACLB 5-2007(Temp), f. 11-1-07, cert. ef. 1-1-08 thru 6-27-08; ACLB 1-2008, f. & cert. ef. 5-13-08; ACLB 3-2008, f. & cert. ef. 8-13-08; ACLB 1-2009, f. 1-28-09, cert. ef. 1-30-09; ACLB 5-2009(Temp), f. 12-15-09, cert. ef. 1-1-10 thru 6-27-10; ACLB 2-2010, f. & cert. ef. 4-23-10; ACLB 3-2011, f. & cert. ef. 11-17-11; ACLB 4-2011(Temp), f. 12-22-11, cert. ef. 1-1-12 thru 6-27-12

 

Rule Caption: Temporary rules implementing 2011 Or Laws Chapter 447 regarding appraisal management companies.

Adm. Order No.: ACLB 5-2011(Temp)

Filed with Sec. of State: 12-22-2011

Certified to be Effective: 1-1-12 thru 6-27-12

Notice Publication Date:

Rules Adopted: 161-500-0000, 161-510-0010, 161-510-0030, 161-520-0010, 161-520-0020, 161-520-0030, 161-520-0040, 161-530-0010, 161-530-0020, 161-530-0030, 161-530-0040, 161-540-0010, 161-550-0010, 161-560-0010, 161-560-0020, 161-570-0010

Subject: Temporarily adopts Oregon Administrative Rule 161, division 500, rule 0000 regarding definitions; division 510, rule 0010 regarding application and registration fees, and rule 0030 regarding miscellaneous fees; division 520, rules 0010 regarding registration requirements, rule 0020 regarding system to verify competency, rule 0030 regarding renewal or reactivation of registration, and rule 0040 regarding change or addition of subject individual; division 530, rule 0010 regarding criminal records check, rule 0020 regarding information requested from subject individuals, rule 0030 regarding potentially disqualifying crimes, and rule 0040 regarding termination or cancellation of surety bond or letter of credit; division 540, rule 0010 regarding training; division 550, rule 0010 regarding annual reports; division 560, rule 0010 regarding audits, and rule 0020 regarding audit standards; and division 570, rule 0010 regarding duty to cooperate.

Rules Coordinator: Karen Turnbow—(503) 485-2555

161-500-0000

Definitions

In addition to the definitions in 2011 Or Laws Ch. 447, § 8, and as used in OAR 161-500-0000 to 161-560-0020, the following terms (whether capitalized or not) shall have the following meanings:

(1) “Appraisal Report” has the same meaning as defined in OAR 161-002-0000.

(2) “Assignment” means:

(a) An agreement between an appraiser and a client to perform a valuation service;

(b) The valuation service that is provided as a consequence of such an agreement.

(3) “Audit” or “auditing” means a formal or official examination and verification of the accounts, correspondence, memoranda, papers, books and other records of an appraisal management company for compliance with 2011 Or Laws Ch. 447, § 8 through 19.

(4) “Board” means the Appraiser Certification and Licensure Board established under ORS 674.305.

(5) “Competency” or “competent” refers to the Competency Rule as defined in the Uniform Standards of Professional Appraisal Practice (USPAP).

(6) “Subject Individual” means:

(a) A person designated as the controlling person as defined in 2011 Or Laws Ch. 447, § 8;

(b) An individual with an ownership interest of 10 percent or more of an appraisal management company; and

(c) In cases where ownership interest of 10 percent or more of the appraisal management company is held by an entity other than an individual:

(A) An individual who wholly owns a corporation that owns 10 percent or more of an appraisal management company;

(B) An individual wholly owning and serving as the only general partner in a limited partnership that owns 10 percent or more of an appraisal management company;

(C) An individual wholly owning and managing a limited liability company that owns 10 percent or more of an appraisal management company; or

(D) An individual who wholly owns any other type of business entity that owns 10 percent or more of an appraisal management company.

(7) “System” means an organized or established procedure or method.

Stat. Auth.: ORS 183.355, ORS 674.305(7), ORS 674.310 & 2011 OL Ch. 447

Stats. Implemented: ORS 674.310 & 2011 OL Ch. 447

Hist.: ACLB 5-2011(Temp), f. 12-22-11, cert. ef. 1-1-12 thru 6-27-12

161-510-0010

Application and Registration Fees

(1) A business entity that has not previously conducted business in Oregon, a business entity performing appraisal management services for under 250 instances of real estate appraisal activity in Oregon in the previous calendar year, or a business entity otherwise serving as a third-party broker of real estate appraisal activity for under 250 instances of real estate appraisal activity in Oregon in the previous calendar year, shall pay to the Board:

(a) A nonrefundable application fee of $250;

(b) A nonrefundable registration fee of $500.

(2) A business entity performing appraisal management services for 250 or more, but less than 1,000 instances of real estate appraisal activity in Oregon in the previous calendar year, or a business entity otherwise serving as a third-party broker of real estate appraisal activity for 250 or more, but less than 1,000 instances of real estate appraisal activity in Oregon in the previous calendar year, shall pay to the Board;

(a) A nonrefundable application fee of $1,000;

(b) A nonrefundable registration fee of $1,500.

(3) A business entity performing appraisal management services for 1,000 or more, but less than 5,000 instances of real estate appraisal activity in Oregon in the previous calendar year, or a business entity otherwise serving as a third-party broker of real estate appraisal activity for 1,000 or more, but less than 5,000 instances of real estate appraisal activity in Oregon in the previous calendar year, shall pay to the Board;

(a) A nonrefundable application fee of $1,500;

(b) A nonrefundable registration fee of $3,500.

(4) A business entity performing appraisal management services for 5,000 or more instances of real estate appraisal activity in Oregon in the previous calendar year, or a business entity otherwise serving as a third-party broker of real estate appraisal activity for 5,000 or more instances of real estate appraisal activity in Oregon in the previous calendar year, shall pay to the Board;

(a) A nonrefundable application fee of $2,000;

(b) A nonrefundable registration fee of $6,000.

Stat. Auth.: ORS 183.355, ORS 674.305(7), ORS 674.310 & 2011 OL Ch. 447

Stats. Implemented: ORS 674.310 & 2011 OL Ch. 447

Hist.: ACLB 5-2011(Temp), f. 12-22-11, cert. ef. 1-1-12 thru 6-27-12

161-510-0030

Miscellaneous Fees

(1) Duplicate Registration — $10.

(2) Changing Active Registration to Inactive — $100.

(3) Reactivation of Inactive Registration — $100.

(4) Late Renewal Fee — $100.

(5) Annual Registry Fee — Actual Fee.

(6) Fingerprint and Background Checks — Actual Fee.

(7) Change or Addition of Subject Individual — $100.

(8) Registration history — $40.

Stat. Auth.: ORS 183.355, ORS 674.305(7), ORS 674.310 & 2011 OL Ch. 447

Stats. Implemented: ORS 674.310 & 2011 OL Ch. 447

Hist.: ACLB 5-2011(Temp), f. 12-22-11, cert. ef. 1-1-12 thru 6-27-12

161-520-0010

Registration Requirements

(1) A business entity applying for registration as an appraisal management company shall submit to the Board all of the following information:

(a) A completed application form listing the information required by 2011 Or Laws Ch. 447, § 9, paragraph (2) as follows:

(A) The name, address, website address, phone and fax numbers of the entity;

(B) The name, address, email and phone contact information of a controlling person of the entity;

(C) If the entity is not domiciled in this state, the name and phone contact information for the entity’s agent for service of process in this state;

(D) The name, address, email and phone contact information of any person that owns 10 percent or more of the entity.

(b) For the persons named in paragraph (a) above, the license, certificate or registration numbers issued by any state to do business as an appraiser or an appraisal management company;

(c) Disclosure of any administrative action taken by any state to refuse, deny, cancel or revoke a license, certificate or registration as an appraiser or appraisal management company, if any; and

(d) If the business entity conducts appraisal reviews, the review appraiser’s name and license or certification number issued by the Board.

(2) A business entity applying for registration as an appraisal management company shall attach to the application for registration the following:

(a) Applicable fees established in OAR 161, Division 510;

(b) A copy of the surety bond required by 2011 Or Laws Ch. 447, § 10, in a form and format approved by the Board;

(c) A signed certification on a form prescribed by the Board:

(A) That the business entity established a system to verify the competency of appraisers on the business entity’s appraiser panel meeting the minimum requirements in OAR 161-520-0020.

(B) A short description of the business entity’s system to verify competency as required in paragraph (2)(c) above.

(d) A signed certification on a form prescribed by the Board that the business entity maintains and retains a detailed record of each appraisal management services request the entity receives and the appraiser who performs the real estate appraisal activity contained in the request for:

(A) Not less than five years after the date of completion of the appraisal to which the record pertains; or

(B) For a period of not less than two years after final disposition of a judicial proceeding in which testimony relating to the records was given, whichever period expires later.

(e) A signed certification on a form prescribed by the Board that the business entity maintains and retains a detailed record of each complaint received by the business entity from a person with an interest in a real estate transaction for which an appraisal was arranged by the business entity, along with the name of the client that requested the appraisal and the date the complaint was forwarded to the client.

(f) A signed certification on a form prescribed by the Board that the business entity provides training to employees of the business entity who:

(A) Select appraisers for an appraiser panel;

(B) Select appraisers to perform real estate appraisal activity; or

(C) Perform quality control examinations.

(g) Sealed envelopes containing fingerprint cards for all subject individuals containing information specified in OAR 161-530-0020.

(3) A business entity applying for registration as an appraisal management company shall attach to the application for registration as an appraisal management company evidence in the form of written policies and procedures demonstrating compliance with 2011 Or Laws Ch. 447, § 12.

Stat. Auth.: ORS 183.355, ORS 674.305(7), ORS 674.310 & 2011 OL Ch. 447

Stats. Implemented: ORS 674.310 & 2011 OL Ch. 447

Hist.: ACLB 5-2011(Temp), f. 12-22-11, cert. ef. 1-1-12 thru 6-27-12

161-520-0020

System To Verify Competency

(1) A system to verify competency of an appraiser under 2011 Or Laws Ch. 447, § 9, shall meet the following minimum requirements:

(a) An appraisal management company shall require that each independent contractor appraiser furnish their license or certificate number issued by the Board under ORS 674.310;

(b) An appraisal management company shall have a system in place to verify each independent contractor appraiser’s license or certification renewal;

(c) An appraisal management company shall require each independent contractor appraiser represent in writing the appraiser’s qualifications and competency, which may include but not be limited to:

(A) The metropolitan statistical areas, metropolitan divisions, areas outside of a metropolitan statistical area, counties, postal codes or other geographic information signifying where the appraiser represents he or she is competent to appraise;

(B) The types of real property the appraiser represents she or he is competent to appraise within the scope of their license or certification; and

(C) Other information relevant to the business activities of the business entity and necessary to demonstrate the competency of an appraiser.

(d) An appraisal management company shall include the following information in an assignment to an independent contractor appraiser, to the extent the information has been communicated to the appraisal management company by the appraisal management company’s client:

(A) The geographic location of the real property, which may include the metropolitan statistical area, metropolitan division, area outside of a metropolitan statistical area, county, postal code, legal description or other geographic information identifying where the real property is situated; and

(B) The type of real property the assignment covers.

(e) An appraisal management company shall require that each independent contractor appraiser completing appraisals at the request of the appraisal management company comply with the Uniform Standards of Professional Appraisal Practice.

(2) An assignment meeting the minimum requirements under paragraph (1) of this rule does not relieve an appraiser from meeting any legal obligations related to the appraiser’s license or certification under ORS Chapter 674 and OAR chapter 161.

(3) The Board retains jurisdiction over administrative inquiries and actions involving misrepresentations made by an individual appraiser regarding competency.

Stat. Auth.: ORS 183.355, ORS 674.305(7), ORS 674.310 & 2011 OL Ch. 447

Stats. Implemented: ORS 674.310 & 2011 OL Ch. 447

Hist.: ACLB 5-2011(Temp), f. 12-22-11, cert. ef. 1-1-12 thru 6-27-12

161-520-0030

Renewal Or Reactivation Of Registration

(1) An appraisal management company renewing a registration as an appraisal management company shall submit to the Board all of the following information:

(a) Renewal fees established in OAR 161-510-0020;

(b) A copy of the surety bond required by 2011 Or Laws Ch. 447, § 10, in a form and format approved by the Board;

(c) A signed certification on a form prescribed by the Board:

(A) That the appraisal management company continues to maintain a system, as stated on the appraisal management company’s initial application for registration, to verify the competency of appraisers on the business entity’s appraiser panel meeting the minimum requirements in OAR 161-520-0020

(B) A short description of the business entity’s system to verify competency.

(d) A signed certification on a form prescribed by the Board that the business entity maintains and retains a detailed record of each appraisal management company services request the entity receives and the appraiser who performs the real estate appraisal activity contained in the request for:

(A) Not less than five years after the date of completion of the appraisal to which the record pertains; or

(B) For a period of not less than two years after final disposition of a judicial proceeding in which testimony relating to the records was given, whichever period expires later.

(2) Renewal applications received after the expiration date and within one year of the date of expiration of the registration shall be assessed a late fee in addition to the renewal fee.

(3) If an appraisal management company does not submit a complete renewal application within one year from the date of expiration of the registration, the status of the registration becomes terminated and the business entity must reapply pursuant to OAR 161-520-0010 and pay all applicable fees.

(4) A business entity whose registration as an appraisal management company has expired shall cease operating as an appraisal management company or providing appraisal management services until the business entity’s registration is reactivated.

Stat. Auth.: ORS 183.355, ORS 674.305(7), ORS 674.310 & 2011 OL Ch. 447

Stats. Implemented: ORS 674.310 & 2011 OL Ch. 447

Hist.: ACLB 5-2011(Temp), f. 12-22-11, cert. ef. 1-1-12

161-520-0040

Change Or Addition Of Subject Individual

An appraisal management company shall, within 30 business days, file with the Board, a notice of change or addition of a subject individual of the appraisal management company along with the appropriate fee. Such notification shall be in writing on a form prescribed by the Board.

Stat. Auth.: ORS 183.355, ORS 674.305(7), ORS 674.310 & 2011 OL Ch. 447

Stats. Implemented: ORS 674.310 & 2011 OL Ch. 447

Hist.: ACLB 5-2011(Temp), f. 12-22-11, cert. ef. 1-1-12 thru 6-27-12

161-530-0010

Criminal Records Check

(1) The Board shall conduct a criminal records check on a subject individual as a condition of issuing a registration as an appraisal management company, or when there is a change or addition of a subject individual of an appraisal management company.

(2) The Board may require additional information from the subject individual as necessary to complete the criminal records check and fitness determination, such as, but not limited to, proof of identity; or additional criminal, judicial, or other background information.

(3) The Board may request or conduct a Law Enforcement Data System (LEDS) criminal records check, an Oregon Criminal Records Check, a Nationwide Criminal Records Check, or any combination thereof to meet the requirements of this rule.

(4) If a subject individual refuses to consent to a criminal records check, including fingerprint identification, the Board shall not issue a registration as an appraisal management company. A subject individual may not contest any determination made based on a refusal to consent.

Stat. Auth.: ORS 183.355, ORS 674.305(7), ORS 674.310 & 2011 OL Ch. 447

Stats. Implemented: ORS 674.310 & 2011 OL Ch. 447

Hist.: ACLB 5-2011(Temp), f. 12-22-11, cert. ef. 1-1-12 thru 6-27-12

161-530-0020

Information Requested From Subject Individuals

For purposes of conducting a criminal records check, a subject individual shall submit to the Board the following information:

(1) A complete, signed copy of a criminal records request form supplied by the Board. The criminal records request form shall require the following information:

(a) Name;

(b) Birth date;

(c) Social Security Number;

(d) Driver’s license or identification card number;

(e) Prior residency in other states;

(f) Any other identifying information deemed necessary by the Board.

(2) An FD-258 standard fingerprint card published by the Federal Bureau of Investigation and completed by a law enforcement agency or a commercial fingerprinting entity.

Stat. Auth.: ORS 183.355, ORS 674.305(7), ORS 674.310 & 2011 OL Ch. 447

Stats. Implemented: ORS 674.310 & 2011 OL Ch. 447

Hist.: ACLB 5-2011(Temp), f. 12-22-11, cert. ef. 1-1-12 thru 6-27-12

161-530-0030

Potentially Disqualifying Crimes; Process

(1) A “potentially disqualifying crime” means a crime that:

(a) Reflects moral turpitude, or an act or conduct which would cause a reasonable person to have substantial doubts about the individual’s honesty, fairness and respect for the rights of others and for the laws of the state and the nation; and

(b) Is rationally connected to the business entity’s fitness to act as a controlling person or own 10 percent or more of an appraisal management company.

(2) The Board shall evaluate a crime on the basis of Oregon laws and, if applicable, federal laws or the laws of any other jurisdiction in which a criminal records check indicates a subject individual may have committed a crime, as those laws are in effect at the time of the fitness determination.

(3) A subject individual shall not be denied under these rules on the basis of the existence or contents of a juvenile record that has been expunged under ORS 419A.260 and 419A.262.

(4) If a subject individual is denied as not fit, the business entity may not obtain a registration as an appraisal management company unless the subject individual divests all or part of the individual’s ownership interest in the business entity or the business entity designates another controlling person, whichever is applicable.

(5) The Board shall inform the subject individual who has been determined not to be fit on the basis of a criminal records check, via courier, or registered or certified mail to the most current address provided by the subject individual of the disqualification. Responsibility for furnishing the most current address remains with the subject individual.

(6) A final fitness determination is a final order of the Board unless the affected subject individual requests a contested case hearing under ORS Chapter 183. A subject individual may contest a fitness determination made under these rules that she or he is fit or not fit to act as a controlling person or own 10 percent or more of an appraisal management company under ORS Chapter 183.

Stat. Auth.: ORS 183.355, ORS 674.305(7), ORS 674.310 & 2011 OL Ch. 447

Stats. Implemented: ORS 674.310 & 2011 OL Ch. 447

Hist.: ACLB 5-2011(Temp), f. 12-22-11, cert. ef. 1-1-12 thru 6-27-12

161-530-0040

Termination Or Cancellation Of Surety Bond Or Letter Of Credit

(1) If the surety bond or letter of credit an appraisal management company maintains is terminated or cancelled, the appraisal management company shall file a replacement surety bond or letter of credit as soon as practicable or within five days of the cancellation or termination, whichever occurs sooner.

(2) An appraisal management company that does not file a replacement surety bond or letter of credit under paragraph (1) of this rule shall surrender the appraisal management company’s registration and cease operating as an appraisal management company.

Stat. Auth.: ORS 183.355, ORS 674.305(7), ORS 674.310 & 2011 OL Ch. 447

Stats. Implemented: ORS 674.310 & 2011 OL Ch. 447

Hist.: ACLB 5-2011(Temp), f. 12-22-11, cert. ef. 1-1-12 thru 6-27-12

161-540-0010

Training

(1) Appraisal management companies must provide specified training to employees who:

(a) Select appraisers for an appraiser panel;

(b) Select appraisers to perform real estate appraisal activity; or

(c) Perform quality control examinations.

(2) The specified training must include, but is not limited to the following topics:

(a) 2011 Or Laws Ch. 447, § 12, 13 and 14; and

(b) The Uniform Standards of Professional Appraisal Practice (USPAP). This topic may be broad in scope, but must at a minimum include the following elements:

(A) Preamble.

(B) Definitions.

(C) Ethics Rule.

(D) Record Keeping Rule.

(E) Competency Rule.

(F) Scope of Work Rule.

(G) Standard 1.

(H) Standard 2.

(I) Standard 3.

(J) Advisory Opinion 3, Update of a Prior Appraisal.

(K) Advisory Opinion 26, Readdressing (Transferring) a Report to Another Party; and

(L) Advisory Opinion 27, Appraising the Same Property for a New Client.

(3) Appraisal management companies must maintain the training records for each employee, as specified in paragraphs (1) and (2) above, not less than five years after the date of completion of the training. Employee training records must include:

(a) The name of the employee; and

(b) The date training was completed.

Stat. Auth.: ORS 183.355, ORS 674.305(7), ORS 674.310 & 2011 OL Ch. 447

Stats. Implemented: ORS 674.310 & 2011 OL Ch. 447

Hist.: ACLB 5-2011(Temp), f. 12-22-11, cert. ef. 1-1-12

161-550-0010

Annual Reports

An appraisal management company shall annually submit to the Board on March 31 a report disclosing the following information on a form prescribed by the Board;

(1) The number of appraisals in the preceding year for which the appraisal management company performed appraisal management services in Oregon or otherwise served as a third-party broker of real estate appraisal activity in Oregon;

(2) Any action taken by a state to refuse to issue, deny, cancel or revoke a license, certification or registration to act as an appraiser or as an appraisal management company.

Stat. Auth.: ORS 183.355, ORS 674.305(7), ORS 674.310 & 2011 OL Ch. 447

Stats. Implemented: ORS 674.310 & 2011 OL Ch. 447

Hist.: ACLB 5-2011(Temp), f. 12-22-11, cert. ef. 1-1-12 thru 6-27-12

161-560-0010

Audits Required

(1) An audit of an appraisal management company registered to provide appraisal management services in Oregon may be conducted by the Board.

(2) In the case of a subsidiary or affiliate of a financial institution engaging in business as an appraisal management company without obtaining a registration to provide appraisal management services in Oregon, the Board may conduct an audit of the appraisal management company in a joint or alternating manner with the appropriate federal banking agency or the Bureau of Consumer Financial Protection as permitted or required by applicable law.

(3) The Board may audit an appraisal management company at any reasonable time or times and may require the production of such records at the office of the Board as often as is reasonably necessary.

(4) An appraisal management company that refuses to submit to an audit shall be considered to have failed the audit.

Stat. Auth.: ORS 183.355, ORS 674.305(7), ORS 674.310 & 2011 OL Ch. 447

Stats. Implemented: ORS 674.310 & 2011 OL Ch. 447

Hist.: ACLB 5-2011(Temp), f. 12-22-11, cert. ef. 1-1-12 thru 6-27-12

161-560-0020

Audit Standards

An audit under OAR 161-560-0010 will examine the appraisal management company’s compliance with 2011 Or Laws Ch. 447, § 9 to 17, including, but not limited to, examination of the following:

(1) The appraisal management company’s system to verify the competency of appraisers on the business entity’s panel meeting the minimum requirements in OAR 161-520-0020.

(2) The names, license or certification numbers, and competency information required by OAR 161-520-0020 of the Oregon licensed or certified appraisers on the appraisal management company’s appraiser panel.

(3) Training materials used by the appraisal management company to satisfy OAR 161-540-0010.

(4) Records of employees who received training as required by OAR 161-540-0010.

(5) The appraisal management company’s record retention schedule, consistent with 2011 Or Laws Ch, 447 and these administrative rules.

(6) The appraisal management company’s business practices and transactions that may indicate:

(a) The appraisal management company attempted to influence the development, reporting or review of an appraisal or appraisal review assignment, consistent with the prohibitions established in 2011 Or Laws Ch. 447, § 12.

(b) The appraisal management company substantively altered in any way a completed appraisal report submitted by an appraiser, consistent with the prohibition established in 2011 Or Laws Ch. 447, § 12.

(c) The appraisal management company failed to make payments to an independent contractor appraiser for the completion of an appraisal or appraisal review, excluding claims for breach of contract or substandard performance, as established in 2011 Or Laws Ch. 447, § 13.

(d) The appraisal management company violated any other provision established in 2011 Or Laws Ch. 447, § 9 to 17 or these administrative rules.

Stat. Auth.: ORS 183.355, ORS 674.305(7), ORS 674.310 & 2011 OL Ch. 447

Stats. Implemented: ORS 674.310 & 2011 OL Ch. 447

Hist.: ACLB 5-2011(Temp), f. 12-22-11, cert. ef. 1-1-12 thru 6-27-12

161-570-0010

Duty to Cooperate

Every subject individual and employee of an Appraisal Management Company must cooperate with the Board and must respond fully and truthfully to Board inquiries and comply with any requests from the Board, subject only to the exercise of any applicable right or privilege. Failure to cooperate with the Board is unethical and is grounds for discipline including revocation or suspension of a registration, imposition of a civil penalty, or denial of a registration, or any combination thereof.

Stat. Auth.: ORS 183.355, ORS 674.305(7), ORS 674.310 & 2011 OL Ch. 447

Stats. Implemented: ORS 674.310 & 2011 OL Ch. 447

Hist.: ACLB 5-2011(Temp), f. 12-22-11, cert. ef. 1-1-12 thru 6-27-12

Notes
1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2011.

2.) Copyright 2012 Oregon Secretary of State: Terms and Conditions of Use

Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722
Phone: (503) 986-1523 • Fax: (503) 986-1616 • oregon.sos@state.or.us

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