LERETA Whitepaper Examines Unique Property Tax Rules; Could Lead to Unwanted CFPB Attention for Firms Lending in Wisconsin

Customer complaints may lead to scrutiny from federal agency

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.

About LERETA

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.

Contacts

For LERETA
Charlyne H. McWilliams, 301-933-5567
Charlyne@williammills.com
or
For
LERETA
Amber Estes, 678-781-7219
Amber@williammills.com