Portfolio and property tax data inaccuracies can result in serious ramifications for your borrowers and your institution. This makes it absolutely key to work with the right vendor in order to mitigate the risk caused by data inaccuracies.
Why outsource at all?
Handing off important aspects of your business can be scary initially, but there is an immense benefit to doing so. Outsourcing hands the work off to experts which frees your organization up to focus on other key business operations. For instance, instead of having multiple staff members solely dedicated to obtaining tax amounts and managing escrow, you could reallocate those resources by partnering with a third-party tax servicer.
We recently discussed this at length, but in summary: outsourcing various mortgage services can help your institution save money, save time, and improve customer service.
Compliance
The right vendor will understand the ins and outs of tax law, which is hugely beneficial for mitigating risk. In fact, working with the right vendor is like having an expert on your team who can help you identify any potential compliance issues as well as solutions to fix them.
With good risk mitigation, comes effective policies and procedures that work within current processes to ensure accuracy. The best vendor for your financial institution is one who understands your current processes and works to integrate solutions for a seamless customer service experience.
Embracing technology
There are many benefits associated with incorporating the use of technology in financial institutions’ processes. Today, banking is increasingly being done online, more specifically via mobile devices. Financial institutions need to be mindful of this switch and ensure they’re making the proper adjustments to enable ease of use for customers.
Moreover, technology can mitigate risk and helps institutions ensure accuracy. Today’s technology can help make sure all borrower information matches their account and alert you of any discrepancies. Technology can also enable enhanced documentation of payment history, allowing you to stay more organized in your records, which is immensely beneficial in the case of an audit.
As additional technological innovation emerges, it’s crucial for institutions to stay on the cutting edge, not only to improve borrower experience, but also to reduce risk by driving accuracy.
Borrower relations
The right vendor will help manage communications and borrower relations as necessary to ensure borrowers are getting the information they need and paying on time—to prevent delinquencies and ensure there are no parcel discrepancies. The best vendors think of your borrowers as their own customers by extension, and put a high importance on providing the best service possible.
There are many benefits associated with outsourcing property tax and escrow services, but you’ll only truly realize these benefits when working with the right vendor for your financial institution. Not sure if the vendor you currently use is the best fit? Use this checklist to find out if it’s time to make a switch.
