How Freddie Mac will benefit from INFORM

Pressure on multi-family markets is high right now due to a supply and demand imbalance. Interest rates continue to raise eyebrows, even as high profile deals continue to close. Everyone wants more affordable housing and they want it now.

Freddie Mac holds a unique position as one of the largest and most active sources of financing for apartments buildings in the United States. With a mandate to support affordable and workforce housing while managing systemic risk, the underwriting team is under continuous pressure to process higher volume without expanding headcount — while simultaneously satisfying oversight requirements and stress-testing obligations.

Converging forces make this an opportunistic time to consider new resources for your underwriting team.

  • Rising loan volumes driven by multifamily demand outpacing underwriting capacity
  • Increased FHFA scrutiny demanding better audit trails and documented due diligence decisions
  • Persistent manual bottlenecks such as rent rolls, inspection reports, and third-party appraisals reduce valuable time for research

An often under appreciated opportunity for work flow improvements is property tax management.
Consider the following:

  • Why are property taxes scrutinized during deal underwriting?

  • What is the current average time spent on property taxes during the 14 day turn time for approval?

  • How often is a significant issue found in the appraisal’s property tax assumptions?

  • What resources and/or training are underwriters provided to research and validate property tax data?

  • What source documentation do you include in your due diligence packets?

Everything you need to know about how real estate is assessed and taxed.

The nuances of local jurisdictions make real estate taxes tough to understand. INFORM is an easy-to-use informational database with comprehensive taxing and assessment information for hundreds of jurisdictions.

When underwriting a new deal, especially in unfamiliar markets, validating property taxes with professionally sourced and independently vetted information provided by INFORM will help you avoid tax pitfalls.

  • Time Saving. Easy to navigate your team can research specific parcels tax situations within minutes, giving them time back to focus on how it impacts the deal.

  • Continuously Updated. New jurisdictions and insights are continuously added and can be requested at any time by any user.

  • Shorten training. Get new hires up-to-speed by decreasing the time needed for them to learn jurisdictional nuances and property tax research techniques.

  • No IT or Hosting Requirements. A cloud-based application with access anytime, anywhere and scalable license commitments.

“We identified an acquisition opportunity in a new market and tax jurisdiction. Taxonics removed any uncertainty surrounding potential tax implications through their comprehensive real estate tax due diligence, despite jurisdictional complexities.”

Jeff Schaeffer
Alterra Property Group

Alterra Property Group

“With Taxonics’ due diligence tools, we were able to clearly define the tax picture for our multi-phase, mixed-use development in the Northeast. Through this detailed analysis, we were able to put our partners minds at ease identifying exactly what the development’s taxes would be during each phase of the build.”

Brandon Segal
Hines

Hines

“Real estate taxes are a critical component of our underwriting due to its significant impact on valuation and cash flow, yet we only have so much time to gather precise and detailed tax data to help us make sound assumptions. INFORM and it’s Acquisition Underwriting has become our primary source for timely and reliable information.”

Tong Li
LCOR

LCOR

What’s in it for Freddie Mac

Interactive parcel map to easily search for and identify any tax parcel, anywhere in the United States.

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Searchable database with hundreds of jurisdictions. Continuously updated and growing in number.

Jurisdiction search screen
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Searchable feed with professional research on jurisdictional nuances, current events, and unique issues.

Research Feed Screen
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Easy access to critical tax information like parcel assessments, tax bills, and tax rates; along with critical assessment dates, appeal deadlines, and more.

Assessing Jurisdiction Profile Screen
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At Taxonics, we take our client’s success seriously and staying ahead of property tax changes that may impact your deals is vital to Freddie Mac’s success.

As an INFORM user, we will support you with:

  • Jurisdiction intelligence on demand: get vetted data and resources for the specific localities that matter to your team
  • Research sharing: access to the complete research and insights feed continuously populated by our tax experts
  • Flexible licensing starting at $120/year: add coverage as your exposure grows, cancel what you don’t need