Lenders will soon be able to “quickly and accurately” estimate property taxes during the residential real estate loan application process, thanks to a new offering from Black Knight Financial Services.
According to an announcement from Black Knight, the company is introducing “Tax for Loan Estimation,” a new program that provides an immediate tax estimate to lenders and features nationwide coverage.
Additionally, Black Knight said that the new program supports lender compliance with property tax tolerance rules for good faith loan estimates under the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosure.
According to Black Knight, the “Tax for Loan Estimation” program can be adjusted to meet a user's specific needs and delivers most estimates in real time, while also providing tax bill values for new construction homes, which should save lenders time by eliminating the need to review builder reports.
The information provided by TLE includes property address, parcel number, current tax bill data, assessment data, escrow to collect at closing and estimated tax bill amounts, Black Knight said.
Currently, the TLE program is provided through Black Knight's LoanSphere Exchange, a Web-based technology that enables lenders and service providers to do business electronically.
The company said that later this year, clients will be able to access TLE directly through Black Knight's LoanSphere Empower, a loan origination system that supports originations of first mortgages and home equity loans.
“Black Knight is pleased to provide this tool to help our clients solve complex problems related to tax estimation,” said Kevin Coop, president of the Black Knight Data & Analytics division.
“We understand that instant responses are valuable when making business decisions, and we also realize the challenges associated with estimating taxes on new construction homes,” Coop added. “When developing the solution, we worked closely with clients to create a tax estimation product that delivers a positive user experience.”