Oregon Appraisal Management Company Bond
The Oregon Appraiser Certification and Licensure Board requires appraisal management companies (AMC) to maintain a $25,000 Appraisal Management Company Bond to be licensed. The bond is a guarantee the AMC will provide compensation to its appraisers, abide by contracts and follow the statutes and rules for appraisal in Oregon.
Jet offers the lowest rate in the market for this bond which is available online once purchase. Most appraisers will save at least 50% on their bond.
What Is the Price for the Appraisal Management Company Bond?
The price for the Appraisal Management Company Bond is $125 a year or $13 a month. AMCs have the option to save more if they purchase a 2 year term at $219 or 3 year term at $313.
| Term | Cost |
|---|---|
| Monthly | $13 |
| 1 Year | $125 |
| 2 Years | $219 |
| 3 Years | $313 |
Jet does offer a monthly payment plan option for $13 monthly. Other carriers do not offer monthly installment plans for Appraisal Management Company Bonds and with Jet, monthly payments come with no down payment required and no fees.
Can Jet File the Appraisal Management Company Bond For Me?
Yes! Jet electronically files the bond to the Board. For current licensees the bond will be sent directly to the Board by Jet. You will also receive a copy of the bond for your records.
For license applicants, an original bond will be mailed to you. You will need to file the bond along with the application before your license may be issued. You can file the application and bond for a new license via mail to:
Appraiser Certification and Licensure Board
200 Hawthorne Ave. SE Suite C-302
Salem, OR 97301
Can I Cancel My Appraisal Management Company Bond and Get a Refund?
Yes, this bond can be cancelled with Jet and a prorated refund will be sent back to you. Jet files a cancellation notice to the Appraiser Certification and Licensure Board and returns all unearned premium. For monthly payments we will promptly stop the payment process. The bond has a 30 day cancellation provision, meaning it will not cancel until 30 days after Jet provides a written notice to the Board. Premium returns at Jet take into account the 30 day period where the bond is still active as Jet is still providing coverage at that time.
If you miss a monthly payment, we will send you a notice before a cancellation is filed to the Board to get that payment in. Sometimes life throws a curveball and Jet’s team is understanding of that fact as we work with you should a payment be missed.
In the event your bond is cancelled, according to Oregon Administrative Rules (OAR) Section 161-520-0060, you must replace the cancelled bond within 5 days or the license will be cancelled.
How Does An Appraisal Management Company Avoid Bond Claims?
In review of Oregon Statute ORS 674, a claim may result from money owed to an appraiser from an AMC, or any judgement against AMC for “negligent or improper real estate appraisal activity” or breach of contract. Bond claims are only valid if reported within one year from the date of the owed payment or judgment against the AMC.
Claims can arise from two different places; either from an appraiser who files an allegation against an AMC or the Board through the renewal audit process of the AMC license. Here is a breakdown of how these processes work.
The Board will perform an audit of the AMC upon every license renewal. During the audit, if the Board finds any violations they could impose a civil penalty against the AMC and/or file a claim against the bond. Violations are often resolved during the audit process and do not result in bond claims. A few examples of prohibited practices under ORS 674.220 include:
- Influencing the development or reporting of the appraiser with bribery, extortion, compensation, coercion, etc.
- Threatening to withhold payment or future business to an appraiser
- Prohibiting an appraiser from reporting fees they were paid
- Altering a completed appraisal report submitted by an appraiser
- Failure to pay to the Board the annual registry fee
Allegations filed against the AMC by appraisers are the result of failure to pay the appraiser within the agreed timeframe or within the 45 day time period per Oregon Revised Statute ORS 674.225. The payment issue is brought to the Board and eventually a court of competent jurisdiction if the two parties cannot come to a payment agreement together.
Bond claims most likely result from an appraisal management company going out of business or egregious involvement in prohibited activities. Bond claims are often rare though and can be avoided by diligently following Oregon appraisal management regulations and properly accounting for payment to appraisers.
In addition to preventing bond claims, AMCs should work to avoid any penalties from the Board. Penalties under ORS 674.995 can come in two variations. The first being a civil penalty up to $15,000 per any one violation. The second being any criminal penalty against an AMC would be assessed as Class A misdemeanor. Also, If the Board finds the AMC is a danger to the general public's health they may suspend or refuse to renew the license immediately, per ORS 183.430.
What Happens If I Get a Bond Claim?
Contact Jet upon receipt of a claim notice immediately and we will take a thorough review of the details. While Jet’s claims department works hard to protect appraisal management companies from claims, there is only so much we can do if the Board makes a judgment against you. It is not Jet’s aim to pay bond claims, but to curb claims activity through proper education and representation of you, the AMC.
The Appraisal Management Company Bond is in place for the purpose of covering a court judgement brought to the Board as a result of a violation or a payment issue with an appraiser. The AMC must make the payment of the court judgment, or risk a bond claim if it is not paid appropriately. Any dispute between an appraisal management company and an appraiser can be handled prior to a court judgement through direct resolution between both parties, or through mediation with the Board.
Unlike other insurance policies, which protects appraisal management companies from their work causing accidental damages, the surety bond protects the appraisers, the public, and the Board. The appraisal management company is ultimately responsible for their actions and must reimburse the surety company for paid claims. Think of the surety as providing a letter of credit that demonstrates to the Board that it’s safe to license you to lawfully offer appraisal management services. A bond claim that is not resolved can result in the ACLB revoking, suspending, or refusing to renew a license per Oregon Revised Statute 674.235.
Who Needs an Appraisal Management Company Bond?
Licensed appraisers such as State Certified General Appraisers, State Certified Residential Appraisers, Registered Appraiser Assistants, or State Licensed Appraisers, in Oregon are not required to have a surety bond in order to be licensed with the Board. Only the appraisal management companies need to obtain a $25,000 surety bond. Appraisal management companies are an external third party that recruits appraisers, manages appraisal reports, and reviews work of appraisers.
How Does the Appraisal Management Company Bond Application Process Work With Jet?
Jet takes pride in making the application process easy to complete! Our online process may be completed within minutes and your bond will be executed instantly. The application only requires a few simple questions to be answered regarding your business.
APPLY FOR APPRAISAL COMPANY BOND
Jet will promptly send you the bond form to be filed with the Board if you are a new license applicant. If you need expedited shipping, you can choose that option prior to checkout.
How Do I Renew the Appraisal Management Company Bond?
Jet makes the renewal process easy! If you are on monthly payments then you don’t have to worry about renewing your bond. So long as the automatic payment comes through the bond will remain current with the Board. There is a 30 day grace period where the bond will remain active with the Board should a monthly installment be missed for any reason.
If you are paying on annual terms simply pay the renewal premium. You will receive an invoice well in advance of your renewal date to submit payment. No additional paperwork will be necessary.
Does the Appraisal Management Company Bond Expire?
No, the Appraisal Management Company Bond does not expire. The bond is continuous and does not have a set expiration date. Jet can cancel the bond after a 30 day written notice is submitted with the Board.
