Quality property tax estimation is critical to completing the required Loan Estimate (LE) provided to the borrower. LEs need to be validated during the underwriting stage to qualify the borrower’s ability to repay, and ultimately property taxes need to be included in the settlement documents. Because borrowers and regulators expect accurate data, it is vital for lenders to use consistent practices to calculate projected tax amounts.
Unfortunately, many lenders gather property tax data from several disparate places, including community websites, realtors, previous property owners, and even borrowers. Of course, asking a borrower for tax information is like asking a homeowner to estimate his own credit score. Only a consistent procurement process can ensure access to the best information available.
This session will examine regulatory and borrower expectations; the challenges of calculating accurate estimates of future tax amounts; best practices for developing a tax estimating process in line with TRID requirements; and solutions available to help improve process efficiency, data integrity and customer experience.