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#2149651 - 10/12/17 05:28 PM Using assessors value
Brigette Offline
Member

Registered: 11/12/13
Posts: 69
Are there any guidelines prohibiting us from using assessors' value rather than a full appraisal?

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Interagency (Reg Z) and CFPB Reg B Appraisal Rules
#2149652 - 10/12/17 05:42 PM Re: Using assessors value [Re: Brigette]
MScarn6942 Offline
Platinum Poster

Registered: 08/12/15
Posts: 551
Loc: Land Lacking in Lakes, IL
For sure make sure it's not a loan over $250k/$1M for residential/commercial. May be other rules too.
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#2149653 - 10/12/17 05:47 PM Re: Using assessors value [Re: MScarn6942]
Brigette Offline
Member

Registered: 11/12/13
Posts: 69
It is residential over $250,000.

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#2149654 - 10/12/17 05:54 PM Re: Using assessors value [Re: Brigette]
#Just Jay Offline
10K Club

Registered: 10/26/06
Posts: 14181
Loc: Cheeseheadland
On its own, no.

From the 2010 Guidance:

An institution may use a TAV in developing an evaluation when it can demonstrate that a valid correlation exists between the tax assessment data and the market value. In using a TAV to develop an evaluation, an institution should:
 Determine and document how the tax jurisdiction calculates the TAV and how frequently property revaluations occur.
 Perform an analysis to determine the relationship between the TAV and the property market values for properties within a tax jurisdiction.
 Test and document how closely TAVs correlate to market value based on contemporaneous sales at the time of assessment and revalidate whether the correlation remains stable as of the effective date of the evaluation.

If you are going to use an assessor's value only, then you follow the above. Normally the assessors value is just one piece of your valuation. If you are looking to create your own valuations, I would review the 2010 Guidance with particular attention to the sections Evaluation Development and Evaluation Content.
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