Eliminating tax penalties by enhanced tax reporting using RETS

The Client

The largest commercial mortgage servicer

The Client

  • Collecting Agencies offer different discount dates for early payment of taxes
  • Varying dates caused incorrect tax due date information to be recorded for several loans in the servicing system leading to penalties for late payments
  • Needed help in identifying such incorrect loan records without the added cost of performing delinquent or open tax searches for every loan

Solution

  • RETS platform automatically reviews each loan for potential problems based on a review of the agency payment

Execution

  • The collateral report was enhanced to include the tax payment due date and discount date in addition to the property information like parcel number and collecting agencies
  • Further customization made to proactively report loans at risk

Value Delivered

  • Reduced penalties from late tax payments
    • Helped eliminate late tax penalties - 3% penalties avoided for the whole portfolio
    • Enhanced reporting to flag records that needed an additional review to avoid penalties
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