This piece originally appeared in the September 2024 edition of MortgagePoint magazine, online now.
Escalating home values have driven up property taxes, leading to homeowner distress, making it more important than ever to help them understand and plan for these increases. Meanwhile, as interest rates start to come back down and refis rise, opportunities for recapturing borrowers will emerge for servicers who invest in tools and technology to improve their customers’ experience.
Luckily, boosting loyalty and satisfaction doesn’t have to mean increasing your workload or expanding your team—if you have the right partner and tools. With the trust of all the nation’s top 25 residential servicers and over 48 million loans under tax service, we’ve identified six strategies to help.
1. Delight Borrowers With Automated Text Messages
Automated text messages are an excellent way to provide instant updates on property tax payments and service statuses. Borrowers appreciate the convenience of staying informed without the need for constant back-and-forth calls.
Mike McKinney from loanDepot LLC shares how this approach has worked for them: “We’re thrilled to provide regular, proactive updates to our customers. This enhancement eliminates the need for borrowers to reach out with questions and keeps everyone on the same page in real time. It’s been a fantastic improvement to our process.”
2. Leverage Agency Relationships for Quality and Innovation
Partnering with a vendor that has a large footprint can lead to strong relationships with agency collectors and access to cutting-edge technology. This helps prevent devastating errors in homeowners’ tax payments and ensures you stay informed about important updates, such as changes to due dates and delinquent taxes.
For example, CoreLogic performs multiple quality checks against the most current agency data before making payments. We continually invest in technology to ensure we have the freshest data available. Also, because we handle more than 80% of the nation’s residential escrow payments, we find collectors are eager to collaborate with us to develop robust data exchanges that minimize errors.
3. Provide Stellar Service With an Experienced, Scalable Call Center
Many borrowers still like speaking to a knowledgeable representative. A scalable call center that can handle an influx of inquiries as your loan portfolio grows is essential.
According to a recent JD Power study, borrowers say the phone is still the most likely customer service channel to drive a successful outcome, and 29% of borrowers still consider it the easiest (JD Power, 2024). Investing in an experienced call center ensures that borrower issues are resolved quickly and effectively, giving you a competitive edge.
4. Optimize Support With Intelligent Interactive Voice Response Systems
Consider implementing intelligent Interactive Voice Response (IVR) systems with client- and loan-specific data that customers would otherwise have to get from a live agent. These systems can handle common borrower questions related to property taxes, such as payment schedules or tax amounts due. Automating these routine inquiries allows your call center staff to focus on more complex issues, improving both efficiency and the quality of service.
5. Streamline Servicing Processes and Improve Escrow Shortage Handling With Better Technology
One of the most effective ways to ensure property taxes are paid on time and to avoid potential risks is to arm yourself with robust self-service technology that gives you near-instant visibility into your portfolio and helps you manage loans faster with fewer discrepancies. By leveraging automation for this, you can lighten the load on your staff, allowing them to focus on more strategic aspects of customer service. This improves efficiency and ensures that your borrowers receive timely and accurate information.
6. Lean Into AI-Powered Tools
AI is transforming the mortgage servicing industry by enhancing borrower engagement, automating complex processes, and improving decision-making. AI-powered assistants, for example, can streamline interactions throughout the loan lifecycle, offering personalized support, proactive outreach, and greater efficiency in handling documentation and back-office operations.
Future AI-powered innovations will even estimate tax amount changes and potential escrow shortages.
Making the tax experience smoother for borrowers involves a multifaceted approach. By choosing a vendor that invests in comprehensive solutions for servicers, agencies, and homeowners alike, your borrowers can confidently have the tools and support they need to navigate the complexities of property taxes.
Whether you manage 200 loans or 2 million, CoreLogic offers industry-leading property tax management solutions with prompt reporting, accurate payments, and exceptional service. With the right partner, you can boost borrower satisfaction while streamlining your operations. For more tips on improving your homeowners’ experience, please get in touch with our team at 866-614-4681 or visit our website at CoreLogic.com/Mortgage/Servicing-Solutions.
