The high loan volumes in the last 12 months have left some borrowers and servicers facing issues related to real estate taxes. HousingWire recently spoke with LERETA CEO John Walsh about why these tax lien problems exist, what role technology plays, and why tax services need business continuity plans.
HousingWire: Complaints about tax issues are a perennial headache for servicers and lately we’ve been hearing that this is getting worse, not better. Why? And what’s being done to prevent these problems?
John Walsh: It’s easy for things to go “sideways” when it comes to real estate taxes: Tax rates change, payments on non-escrow accounts can be late or missed, escrow accounts balances have to be adjusted, etc. When any of these events occur, a servicer is often confronted by a confused, sometimes irate, customer.
There is usually a fair amount of call center time involved in explaining what went wrong and what is going to…