SUMMARY (complete): Appraisal Fee Survey #1 (non-complex, typical)

CCAP (California Coalition of Appraisal Professionals) Appraisal Fee Survey #1 was launched in September of 2010. The survey was in the field for 30 days +/- and was sent to a survey sample group of 800 +/- Licensed, Certified Residential and Certified General appraisers in California. Sample group appraisers are from CCAP membership and/or CCAP statewide sphere of influence files. California appraiser population is 14,000 +/-.

Survey focus is the non-complex, typical appraisal or appraisal service completed on or before March 2009. The survey objective is to determine from actual data, supported by in file appraisal invoices to lenders, mortgage brokers and other users at that time, what fees were being charged, and paid, before the adulteration of the appraisal marketplace resulting from implementation of the HVCC and the addition of the 1004MC.

CCAP - Positions on Issues of General Appraiser Concern

Appraisal Fees: CCAP holds that the appraisal fee(s), no matter the assignment, should be determined between the appraiser and the client. While minimum fee(s) guidelines can be viewed, as an interactive process between the appraiser and the market, a final fee(s) should be determined only after appraiser client agreement on assignment Scope of Work and assignment time frame.

Survey Highlights:

- Data was reported from all 58 California counties.

- Survey confidence interval was determined to be 95% +/- overall.

- 90% of respondents hold Certified or Certified General Licenses.

- 50 % of respondents have between 11 and 30 years experience; 40% of respondents have between 5 and 10 years experience.

- Clients (pre HVCC) - greatest number of assignments were received from: Mortgage Brokers 91%, Banks 69%, Credit Unions 33%, Lawyer’s 31%.

Attitudes, Opinions and Impressions:

When asked the definition of Customary… 81% said commonly practiced, 48% said according to - established by practice, 48% said based on custom or tradition rather than written law or contract.

When asked the definition of Reasonable… 64% said rational / capable of reasoning, 64% said reasonable for the market area, 61% said not excessive or extreme.

When asked the definition of non-complex… 75% said normal / regular / unexceptional, 61% said typical, 56% said common type.

When asked the definition of Complex… 78% said complicated, 70% said non-typical, 65% said intricate (Scope of Work).

Fee(s) Highlights:

- Form 1004 (Single Family Residence); 82% report fees between of $350 to $425; $375 to $400 is predominate.

- Form 1073 (Condominium); 76% report fees between of $350 to $425; $375 to $400 is predominate.

- Form 2055 (Exterior Only, Drive-By); 73% report fees between of $250 to $325; $275 to $300 is predominate.

- Form 1025 (Multi Family, 2-4); 73% report fees between of $500 to $700; $600 to $650 is predominate.

- Land Appraisal; 36% report fee range of $400 to $425; $400 to $425 is predominate. 25% report non applicable.

- Form 2000 (Field Review); report fee range of 55% $250 to $375; $300 to $325 is predominate. 13% report not applicable.

- Form 2000A (Field Review, 2-4); fee range of $350 to $400; $300 is predominate. 15% report non applicable.

- Desk Review (Single Family Residence); 46% report fee range of $150 to $225; $175 to $200 is predominate. 14% report not applicable.

- Drive-By Review (Single Family Residence); 46% report fee range of $200 to $325; $250 to $275 is predominate. 27% report not applicable.

- Form 2075 or 2070 (External Evaluation); 58% report fee range of $150 to $275; $175 to $200 is predominate. 22% report not applicable.

- Form 1004C (FHA Manufactured Homes); 57% report fee range of $375 to $475; $400 to $425 is predominate. 28% report not applicable.

- Form 1004D [or 442] (Certificate of Completion); 91% report fee range of $100 to $175; $100 to $150 is predominate.

- Form 1004 D (Recertification of Value); 75% report fee range of $100 to $225; $100 to $150 is predominate.

- Form 1007 (Rent Survey); 75% report fee range of $100 to $225; $100 to $150 is predominate.

- Form 216 (Operating Statement); 75% report fee range of $100 to $225; $100 to $150 is predominate.

- Additional Fee (time/mileage, outside normal service area); 75% report fee range of $100 to $225; $100 to $150 is predominate.

- Cancellation Fee(s); Typical cancellation fee was 50% of the agreed assignment fee or, $50 to $100 dollars per hour per hour expended to time of cancellation.

- Turn Times (time from appraisal order to completion); 83% indicated a range of 2 days to 4 days from the appointment date (setting appointment varies bases on transaction type); 3 days is predominate.

Appraisal Fee Survey #1 (non-complex, typical) focuses on actual fees paid (pre HVCC). The Census of Appraisers (Survey #2, to field by 11.1.2010) focuses on demographics, educational readiness, and business volumes pre/post HVCC. Appraisal Requirements / Practices (Survey #3, in preparation).

Distribution: Federal Reserve System Board of Governors, members of the California Congressional Delegation.