UAD to Assist Local Assessors?
Folks, 16 local Assessors across the US have requested to FHFA that the GSE’s UAD property rating data be provided to Assessors, with the belief that UAD will help them be more accurate in their local tax assessments.
This info has been circulating the past few days, in the link below:
From the article:
Kaegi (Cook County, Illinois) has suggested that the Uniform Appraisal Database maintained by the federally chartered mortgage buyers Fannie Mae and Freddie Mac might help plug the gap. The UAD contains information on the condition and quality of millions of U.S. homes that were appraised for mortgages. Kaegi recruited 15 other tax officials from major urban areas — including Seattle, Miami, Philadelphia and Dallas — to join him in asking for access to that information.
While it’s true UAD has tons of data kept in the mason jars on Funk and Wagnalls porch (tribute to the late Johnny Carson!), the UAD does not have data on all homes within Assessor jurisdictions.
The UAD only has data from 2011 forward, since it didn’t exist before then.
UAD only has data for homes that have been appraised, or that have had ratings applied by appraisers looking at comps; not all homes have been in jurisdictions.
Just because ‘house A’ has Q & C ratings of “X and Y” does not mean those ratings will transfer to the other homes nearby. Thus, how does that dearth of data make tax assessments any more ‘fair’ than the current process Assessors use for mass appraisal?
As noted in the article, scrubbing appraisal data to only provide a street address, city, ZIP and two ratings for every home will be a very involved process, even for the whiz-bang programmers at FHFA. If done, there probably would be a cost involved. Since there’s no ‘free lunch’ anywhere for anything government does, despite what some believe, someone, likely property taxpayers, will have to foot the bill.
Then there is a question about Commercial properties, since appraisals for those don’t use the UAD process.
So, call me a skeptic about this proposal. But, as always when government officials are concerned, it will be interesting to see what FHFA decides to do about providing UAD property rating info to Assessors.