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64 servicers this year is advancing escrowed property tax payments to tax collector offices for borrowers who have paused their mortgage payments. In order for the current taxes to be paid on time, servicers are advancing corporate funds to support outgoing tax payment due to insufficient funds being in escrow at time of tax payment. e advance is then collected from borrowers on their next escrow analysis resulting in an increased escrow payment on their loan. For non-escrow borrowers, servicers are seeing an increase in tax delinquencies due to the borrower's inability to pay current taxes on time. Servicers are forcing escrow and advancing payment for delinquent taxes in order to prevent a property from going to tax sale and protecting their lien on a property. GETTING AHEAD OF THE GAME ere are ways to overcome these challenges, starting with technology. Fortunately, the tools that enable verification of property tax data have come a long way in providing that information in a streamlined fashion. However, not all technologies are the same. Few mortgage servicing technologies offer tax modules, for example, let alone provide access to the latest property and tax information from every jurisdiction represented in the average servicer's portfolio. Even among third-party vendors that offer property tax tracking and management platforms, few of these platforms can be easily integrated with leading mortgage servicing systems. Also rare is the property tax tracking platform that is agile and scalable enough to give servicers complete control and visibility in their tax reporting, regardless of how large their portfolios are or how many loan modifications and refinances they do. A trustworthy third-party outsourcing company that specializes in property taxes typically has built out a technology framework that enables servicers to seamlessly and safely exchange tax information when onboarding loans and a track record of reducing costs. Such providers typically have their own end-to-end property tax tracking and reporting solutions, so that lenders and servicers are able to maintain visibility and control over their portfolios. Such solutions should be able to integrate with leading servicing platforms via application programming interfaces (APIs) and file sharing, so they can be implemented quickly. For long-term success, it's also critical to partner with providers that are committed to constant innovation. During a time in which technologies are always improving, all of your partners must be continually updating their systems to keep pace with new innovations as well as new business demands. Look for organizations that are putting out constant platform enhancements and features, and don't be shy about asking for references or doing your own due diligence to determine whether their claims are true. ACCESSING THE RIGHT EXPERTISE Of course, technology alone can't solve every business issue. So it's also a smart move to partner with a third-party provider that has tax experts on staff who have experience working in the servicing industry and who understand the challenges servicers face and how they can be met. Such experts are well-versed in not only conducting property tax searches, but also know how to uncover municipal and utility liens and property code violations. A third-party tax service provider can also help servicers understand and keep abreast of differences between separate tax jurisdictions and their requirements and timelines. e benefits of accessing the right property tax expertise cannot be overstated. e more time servicers spend attempting to track and manage tax payments, the less time they spend on their core mission of assisting borrowers with their financial needs and providing excellent customer service. e bottom line is that mortgage servicers face a difficult year ahead, including the likelihood of increased government scrutiny with a new Congress and presidential administration in place. Ultimately, having access to tax experts and property tax tracking technologies will help reduce a servicer's risks in the coming year without having to add in- house staff. If ever there was a time to access such assistance, it's now. Shane Jones is the VP of Tax Outsourcing Operations for SKL Global Solutions, a leading provider of digital platform and business process management solutions for the mortgage industry. Jones is a servicing expert with more than 25 years' industry experience, including leadership roles at Mr. Cooper and CoreLogic. He can be reached at 469.646.8764 or sjones@slkga.com. Feature By: Shane Jones For long- term success, it's also critical to partner with providers that are committed to constant innovation.