Get the right property tax data throughout the loan origination process

Accessing the right property tax information early plays a critical role in the loan lifecycle because it affects prequalification, pricing, disclosures and borrower confidence. When this information is correct from the start, everyone involved can avoid surprises that may delay a loan.

However, collecting tax data across multiple sources, waiting days for third parties to deliver critical information or relying on manual data collection methods can create inaccuracies and inefficiencies for all parties involved. This can jeopardize loan approvals, delay the closing process and negatively impact a borrower’s experience.

By using a reliable, automated platform, lenders can bypass these common hurdles and operate with confidence. ICE's Property Tax Solutions deliver nationwide tax data directly from the source. From prequalification to servicing, our comprehensive tax solutions help to reduce operational costs, reduce tedious manual entry and provide a consistent experience for every borrower.

When lenders rely on traditional methods to collect property tax data, they risk compromising the borrower’s experience and introduce the potential for manual error. For example, having to navigate multiple property tax authorities, which differ by state, may require lenders to visit various websites to gather the information needed. Handling this part of the process without the right tools in place wastes valuable time and may lead to inaccurate information. Property taxes may also be underestimated to skew a borrower’s debt-to-income ratio. If the initial tax calculations are even slightly off, this may affect the borrower’s loan approval.

Lenders must have consistent processes in place to quote accurate taxes across different loan scenarios. For instance, new construction loans present a specific type of hurdle when no assessed tax value exists yet for the property, while purchase and refinance loans must account for applicable exemptions and discounts that can vary significantly by jurisdiction. Getting an accurate tax estimate for each loan situation is imperative: quote too low and the borrower faces a future escrow shortage; quote too high and a creditworthy borrower may be incorrectly disqualified. Without a reliable, standardized approach, lenders are left making judgment calls that introduce both compliance risk and borrower dissatisfaction.

Additionally, the complexity of collecting accurate tax data from multiple sources can be painstakingly time consuming. Lenders have to cross-reference property addresses with the correct parcel IDs, identify the appropriate collecting agencies across thousands of taxing jurisdictions and then gain access to the underlying tax data. Furthermore, that information must be accurately represented and communicated across a broad set of stakeholders including underwriters, realtors, title companies, investors and compliance teams…all of who depend on the same data being consistent and correct. Fragmented, manually assembled data creates the conditions for miscommunication and costly errors throughout the origination workflow.

ICE’s Property Tax Solutions help reduce these bottlenecks by providing lenders with verified tax data throughout the entire origination process. The solutions automatically feed data directly into over 90 tax-related fields within the Encompass® loan origination system that would otherwise require manual entry, alleviating errors and saving lenders significant time per loan.

The offering provides reliable tax data for every state, county and jurisdiction, and supports multiple loan types, including purchase, refinance and construction loans. For example, for construction loans, ICE provides both a tax liability estimate and a verified tax certificate, each verified by our customer support team and checked against proprietary property data, giving lenders a complete picture before origination begins.

In some cases, certain states provide a discount for prepaying property taxes. With ICE, lenders can configure the solution to show discount dates rather than standard due dates and can view tax exemptions the borrower is already receiving.

Delivering a streamlined process to obtain property tax information for loan estimates and closing disclosures is a differentiator for lenders striving for accuracy, compliance and faster closing times. With ICE’s Property Tax Solutions, users get:

Fragmented tax data doesn’t have to slow you down. Discover how ICE’s Property Tax Solutions can help you prevent costly errors, speed up approvals and maintain a sharp competitive edge.