Jane Bartolai -- Residential Real Estate Tax Escrow Services · EOC-50 EOC-45 EOC-40 EOC-15 EOC-5 5...

©2014 CoreLogic, Inc. All rights reserved. Proprietary & Confidential

Residential Real Estate Tax Escrow Services

Wisconsin Government Finance Officers Association WGFOA

April 2014 Conference

Presenter: Jane Bartolai, Local Government Solutions Specialist, LGSS


Local Government Solutions Specialist - LGSS§ CoreLogic representative/liaison to the tax collectors.

§ Agency relations.v Work with the agency to help resolve issues ranging from refunds,

duplicate payments, correct amounts, and anything else affecting your office.

v Objective is to aide CoreLogic in obtaining property tax data efficiently, while addressing the needs, and limitations, for and on behalf of the agency.

§ Qualifications and background.

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CoreLogic Macro-Level Overview§ CoreLogic provides property information, analytics, and services

in the United States and Australia.

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§ Headquartered in Irvine, CA.§ 5,000+ employees.

§ Presence in multiple markets.w CoreLogic’s client base is far reaching and includes:

̶ > 500 lending institutions.̶ 2,500 mortgage bankers, including the top 100 mortgage lenders.̶ 15,000 property appraisers.̶ 750,000 real estate agents and brokers.̶ 2,000 title companies.̶ All federal government mortgage agencies, the Comptroller of the Currency,

the Federal Deposit Insurance Corp., and the Federal Home Loan Bank.

§ Mortgage Services.w Located in Westlake, TX.w Property Tax Services.


What is a Tax Service?

§ A third party hired to facilitate the reporting, verifying and paying of real estate taxes for our customers.

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Why do mortgage servicers utilize a tax service?§ Provide tax information for payment§ Transfer of liability (Timeliness and accuracy guarantees)§ Efficiency, cost savings§ Geographic expertise§ Determine payment status for non-escrow loans§ Legislative updates

Who are our customers?§ Commercial Banks§ Savings Institutions (thrifts)§ Mortgage Companies§ Credit Unions


CoreLogic Property Tax Services§ Basic Escrow and Non-Escrow Tax Reportingw Residential Tax Servicesw Our clients are the lenders.

̶ Reporting services tailored to their needs.

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§ Tax Outsourcingw Ala carte services for payment processing, and delivery of tax payments.

̶ Open item and refund processing, included.

§ TaxWatchw A database solution providing lenders the tax status of loans.

̶ Automated access to delinquent property tax and real estate tax sales information. • > 141 million parcels.• > 25 million delinquent, and tax sale records.

§ Instant Dataw Instant, real-time real estate property tax information to assist with

Good Faith Estimates (GFEs) and HUD-1 Settlement Statements.§ Commercial Tax Services


Tax Outsourcing§ Definition: When a third party is employed to perform functions for a

company. These teams can be viewed as the entire tax department for customers using this service.

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§ Reasons for Outsourcing Tax Service: w Lower costs (due to economies of scale or lower labor rates) w Lack of in-house resources w Completing work more efficiently or effectively w Increased flexibility to meet changing business conditions w Tighter control of budget through predictable costs w Access to innovation

§ Examples of Tax Outsourcing Services Provided by CoreLogic: w Tax Disbursement and (Direct Pay)w Non-Escrow loan follow-upw Tax Researchw Return and Refund Check Resolutionw Mail Distribution


CoreLogic Basic and Non-Escrow Tax Reporting§ Tracking and reporting of tax bill requests, and payment dates for

more than 22,000 taxing jurisdictions.

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§ Our Residential Tax Services include:w Non-escrow Delinquency Services: Monitors the payment status of

loans where the borrower is responsible for paying taxes directly to the taxing jurisdiction.

w Delinquency Letter Follow Up Services (DELFUS): Delinquency follow-up mail services. Based upon the borrower’s actions, we’ll send additional escalation letters, on behalf of the mortgage company. ̶ Management reports compiled, based on responses received.

w Redemption Reporting: Assists in determining the status of real estate tax payments on properties, with the payment information required to resolve a delinquency and/or tax sale.

w Tax Payment Verification and Tracking: Payment status of current and prior year taxes in a simple paid/open report.


CoreLogic Residential Tax Services§ Lenders are our clients.

§ Six regional offices.w Midwest Region Service Center (MWRSC)

̶ Located in Elgin, IL.̶ Coordinates tax reporting events for: Illinois, Indiana, Iowa, Kansas,

Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, West Virginia, and Wisconsin.

̶ My territory - Iowa, Illinois, Wisconsin, Minnesota.

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§ 2013 -w 43 million liens paid.w $66 billion remitted.

§ 2014 – Bank of America Acquisition Integration.


Midwest RSC Reporting Area

MN

SD

ND

KS

NE

MO

IA

IL

WIMI

IN OH

KYWV

ST Agencies Tax Amounts(2010)

Escrow Contracts

(2014)

Non-Escrow

Contracts(2010)

IA 101 2.4M 251K 39KIL 103 3M 1.03M 436KIN 93 393K 578K 138KKS 107 875K 187K 35KKY 507 1.9M 353K 114KMI 1,871 3.3M 826K 395KMN 88 2.2M 447K 91KMO 439 2.4M 538K 110KND 55 351K 27K 6KNE 95 921K 30K 24KOH 89 4.1M 1.08M 286KSD 68 245K 39K 7KWI 1,970 2.8M 319K 148K WV 56 1.4M 101K 34K

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WI Escrow Tax Service Contracts

1,336

790

1,861

17,125

889

320

1,701

2,936

1.777

931

3,342 4,354

559

1,7081,307

363

26,918

1,580

5,198762

3,105

846

486

422

4,397

1,032

11,799

1,222

790

7,426

1,980

796

159

5,073

448

54,538

1,504

5,194

2,224

2,944

125

9132,077

591

10,286

612

3,632

2,344

214

5,553

2,763

1,963

829

6,752

439

9,107

10,792

1,998

1,1992,993

827

553

7,769

1,137

10,057

9,661

7,002

1,786

3,7762,970

1,369


Wisconsin Options1: By December 20, lender sends borrower a check for the funds held in escrow for tax payment.• Chap 138. Money and Rates of Interest.• The check is to be made payable to the borrower and taxing authority.• Homeowner will pay taxes direct to collector, and obtain a receipt.• Some homeowners prefer this option as it gives them the assurance that taxes will be paid prior

to year end thus enabling them to claim the deduction on their tax return.

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2: Full Year by 12/31.• Due by Dec. 31 - Chap 138. Money and Rates of Interest - By December 31, mortgage

servicer is to pay full year taxes to the collector (without involving the homeowner) provided that original tax statements are received by December 20.

• If paid by December 31, are tax-deductible.

3: Full Year by 1/31.• Pay taxes when they are due on January 31 in the full year amount (74.11).

4: Installments; 1st by 1/31, remainder when due.• Pay taxes on an installment basis (74.11).• The majority of Wisconsin agencies offer an option to pay taxes in two installments by January

31 and July 31.

5: Installments; 1st by 12/31, remainder when due.


Tax Service – Data Procurement Process

Email Phone Fax Letter

Data Request

Agency Information

Email CD/Disk Paper

WireChecks

Payment Returns

Escrow Reporting

CoreLogic Tax CollectorCustomer

TAR/SEL 02

Agency Payment

FTP (File Transfer Protocol).

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§ Manualo Bills are sent to a vendor to be keyed in.o Errors can be made.o Mail can be lost.o Bill Requests.o Wisconsin Counties send us tax files – not manual bills.

§ Automatedo Escrow Reporting.

̶ Full file = All parcels.• Current tax cycle.

o Non-Escrow, or Delinquency Reporting.̶ Full file = All delinquent parcels with base amounts.

• Current tax cycle, or• 3+ years history.

Manual v. Automation Procurement

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§ Manualo Bills with one check per bill/parcel.o Bulk check per agency.o Bulk check per customer.

• One check per lender w/ batched bills.• One check per lender w/ a sorted payment list (or other sorting

options, depending on specifications of the agency).

§ Autoo Wire payment with an electronic payment file. o Wire payment with a sorted list.o 13 Agencies currently receive a Wire/ACH payment.

Manual v. Automation Tax Payments

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Examples of Types of Automation

§ Excel Spreadsheet§ Delimited Text File – Each data element (field) is separated by a

delimiter, often a comma or a tab. In many cases the name of the field is the first record on the file. § Fixed Length Text File – Each data element (field) is a fixed length

and is defined on a file record layout.§ Print Files – These are files that were intended to be viewed or

printed in a report format. These are often in a .pdf format and typically cannot be formatted to be processed electronically. There are however print files that created in a text or Word format that are easily read print reports but can also be formatted and processed electronically.

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Examples of Types of Automation§ Delimited Text File

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Examples of Types of Automation§ Fixed Length Text File

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Examples of Types of Automation§ Print File (Can be formatted and converted to Text File)

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Pay

men

t S

hipp

ed T

o C

olle

ctor

Tax Amount Reporting (TAR) TimelineELD = Economic Loss Date, or Due Date

Taxes Due

(ELD)

**ELD-30

ELD-27

ELD-25

ELD-22

ELD-19

ELD-5

ELD-12

2Days

5Days

7Days

7Days

3Days

3Days

3Days

File

Pro

cure

men

t

File

Loa

ding

&

QC

Pre

-TA

RV

alid

atio

n

TAR

Rep

ortin

g &

Dis

tribu

tion

Cus

tom

er

Pro

cess

ing

TAR

Ret

urn

& B

alan

cing

**Start of agency file availability

Latest data can be distributed to customers

** Prior to requesting the file CoreLogic will send out a BILL REQUEST to the agency (if the agency requires one). The BILL REQUEST Identifies what liens we are servicing and assists the agency in determining what bills to send us.

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Fina

l TP

S

Rep

ortin

g &

Dis

tribu

tion

Man

ual

Pro

cure

men

t

TPS

Rep

ortin

g &

Dis

tribu

tion

Pre

-repo

rtV

alid

atio

n

File

Loa

ding

&

QC

Follo

w-u

p Fi

leP

rocu

rem

ent

TPS

Rep

ortin

g &

Dis

tribu

tion

Pre

-repo

rtV

alid

atio

n

File

Pro

cure

men

t

File

Loa

ding

&

QC

Delinquency Reporting TimelineEOC= End of CycleTPS = Tax Payment Status

End of Cycle(EOC)

EOC-60

EOC-55

EOC-50

EOC-45

EOC-40

EOC-15

EOC-5

5Days

5Days

10Days

5Days

5Days

5Days

5Days

80% of all contracted liens must be reported

EOC-30

10Days

EOC-25

EOC-20

5Days

5Days

98% of all contracted liens must be reported

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Concerns? Questions?

Thank You!

Midwest Region Service Center (MWRSC)2500 Westfield Dr., Suite 102Elgin, IL 60124

Hours: 7:00 a.m. – 6:00 p.m. [Mon. – Fri.]

Phone: (800) 969-9620 (847) 783-7373

Fax: (800) 294-5868(847) 531-8121

w Customer Service̶ Identifying payments.̶ Refund questions.̶ Duplicate payments.̶ Incorrect parcel issues.̶ (800) 969-9620, Press 0

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Jane Bartolai -- Residential Real Estate Tax Escrow Services · EOC-50 EOC-45 EOC-40 EOC-15 EOC-5 5...

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Transcript of Jane Bartolai -- Residential Real Estate Tax Escrow Services · EOC-50 EOC-45 EOC-40 EOC-15 EOC-5 5...