Every tax season is difficult since little happens, or at least not much, until the time the taxing authorities release their bills, and the taxing authorities frequently alter the release and due dates. For instance, a county with over 1.8 million assessed parcels, one of the largest in the nation, traditionally released its tax bills by 7/1, and they were due 8/1.
This year’s tax assessments will be greater than usual due to property price growth, which requires the agencies to compute the modifications, which could lead to additional delays. Increased tax assessments translate into higher tax obligations in the servicer’s eyes.
Also, one of the main ways that many mortgage companies now raise money is by providing servicing. Given the present rise and volatility of interest rates, we observed this towards the end of last year and anticipated seeing more of it this Q4. Finally, remember that an investor who purchases a sizable portfolio is now liable for the taxes due on those loans.
This tax season is about planning and informing clients of what to expect, just like every season. But unfortunately, data integrity is one of the most challenging issues loan servicers have ever dealt with in the tax industry. Due to these data problems, payments are often missing, escrow analyses are incorrect, automation rates are lower, and ultimately, there are more calls and complaints from borrowers.
Automating is the first item on any servicer’s wish list to address this issue. So, tax service providers are utilizing automation to speed up the tax procurement process and enhance the accuracy and effectiveness of the data. To read more on this, click the link below