COVINA, Calif.--(BUSINESS WIRE)--As consumers become more comfortable with filing complaints with the Consumer Financial Protection Bureau (CFPB), lenders need to be more aware of property tax rules for loans in their entire portfolio, according to LERETA, the leading national real estate tax services and flood data provider. With recent industry staff changes, now is a good time for a thorough refresher course on property tax requirements.
“There are a few consumer narratives in the complaints filed with the CFPB that describe property tax mismanagement,” said Douglas Dick, tax report processing manager at LERETA. “Several reasons exist for lenders to evaluate their property tax collection processes and determine if they are working with the right third parties to ensure compliance. The possibility of being cited in a complaint as well as the need to educate new staff on the different nuances of property tax collection are just two reasons to do so.”
In a whitepaper, The Cheesehead Challenge: Unique Tax Collection Policies in Wisconsin, about the unique tax requirements in Wisconsin, authors Douglas Dick and Sandra Rodarte explain in detail the state requirements and how those requirements can sometimes differ from municipal statues.
“Property tax statements [in Wisconsin] are typically mailed mid-December, which can be challenging for mortgage lenders looking to make year-end tax payment disbursements,” according to the whitepaper. “Wisconsin also practices county and municipal collection variation where different installments can be payable at different locations. For the Wisconsin mortgage lender, awareness of these tax collection nuances and a basic understanding of the Wisconsin property tax playbook is an essential first step toward a winning tax season.”
The whitepaper is available for download from LERETA’s website, www.lereta.com.
Since 1986, LERETA has provided the mortgage and insurance industries the fastest, most accurate and complete access to property tax data and flood hazard status information across the U.S. LERETA is committed to giving customers extraordinary service and cost-effective property tax and flood solutions. LERETA’s services are designed to increase efficiency, reduce penalties and liabilities and improve processes for mortgage originators and servicers. LERETA’s dedicated teams of real estate tax and flood professionals along with LERETA’s experienced management team allow the company to lead the industry in service and technology.