LodeStar's Property Tax tool returns an estimated property tax amount for your loan file, along with due dates and escrow calculations. Below are answers to the questions we hear most often about how the tool works, where the data comes from, and how to use it in your workflow.
Is the quote based on the actual property, or a general area estimate?
It depends on what information is available on the file.
- Full subject property address: LodeStar pulls the actual recorded tax data for that property.
- TBD file (no address yet): LodeStar returns a broader estimate based on county, township, and zip code. This is useful early in the process but is less precise than an address-based pull.
Where does the tax data come from, and how reliable is it?
Property tax data is licensed from Cotality (formerly CoreLogic), which LodeStar selected as the industry standard after evaluating several providers. Cotality combines direct county-level data connections with its own tax-processing business.
Two states tend to require extra attention:
- Michigan: Summer and winter tax cycles are handled according to each client's preference.
- California: Assessed values for long-time owners are grandfathered at lower amounts, so historical records may not reflect what a new buyer will pay. Many California lenders use a flat 1.1% of the purchase price instead.
How often is the tax data updated?
At least annually. Cotality does not publish a fixed refresh schedule or send notifications when county data changes. A noticeable change in results is usually the first sign that a county has updated its millage rate.
Does the quote account for exemptions (homestead, VA, second home/investment)?
It depends on the transaction type.
- Purchase: For a primary residence Purchase, LodeStar will return the homestead exemption. LodeStar returns the full base tax amount without exemptions on all other purchases. There is no way to confirm at quote time whether the new buyer will qualify for a given exemption, so this approach avoids under-disclosing. If the borrower later qualifies for an exemption, the result is a lower tax amount rather than a shortfall.
- Refinance: LodeStar assumes the owner is the same and returns the amount with existing exemptions applied.
How are due dates handled (actual vs. discount date, arrears vs. advance)?
By default, LodeStar returns the standard due date. This can be changed to fit your preference; for example, some clients use the delinquent due date instead. ***This customization is available in the Enterprise tier and above.***
Arrears vs. advance is accounted for in the escrow calculation (for example, reflecting a seller credit when taxes are paid in arrears). However, the results do not explicitly label a tax amount as "arrears" or "advance."
Which line item does the property tax map to?
Property tax reserves map to the borrower's side of the itemization by default, in the 1000-section reserves. Because these are lender-required prepaids, they do not map to the seller's side.
Is the underlying millage rate provided?
No. Due to confidentiality requirements with our data provider, the millage rate itself is not returned.
What does it cost, and is it included in the free or API tiers?
Property tax quotes are $1 per quote and are available on paid tiers only. They are not included in the free Discovery tier or the free API.
Charges apply per unique run. To avoid unnecessary charges, the tool does not run automatically; it is triggered by a manual button click or by an automated trigger you set up in Encompass Partner Connect (EPC). LodeStar also offers the option to automatically run taxes on each file, eliminating the need for users to manually initiate the tax search each time.
Is each property tax pull documented for compliance purposes?
Yes. Every property tax run adds a page to the date- and time-stamped PDF that LodeStar places in the eFolder, showing exactly what was quoted and when. The destination eFolder document can be configured to fit your setup.
Will LodeStar flag the file if county data changes after a quote is run?
No. Each quote is a point-in-time pull, not a live monitor. LodeStar only returns data when the tool is run.
To keep data current as a file progresses, you can build an EPC trigger that reruns the quote automatically when certain conditions are met.
Example: Rerun the property tax quote whenever the purchase price changes.
If a purchase agreement amendment is uploaded after a quote was run, will it be picked up automatically?
Not by default. Reruns are manual unless you build an EPC trigger that watches for new documents in the eFolder and reruns the quote automatically.
If the estimate differs from the certified tax record, who is responsible?
Property tax estimates are based on third-party data from Cotality, not LodeStar's own data. For this reason, LodeStar does not rep and warrant property tax estimates the way it does title and government fees.
Note: Property tax quotes are intended for the Loan Estimate (LE) and early disclosure stage. You should still obtain a certified tax certificate from the title company before the Closing Disclosure (CD).
How are other clients using this feature?
Adoption is high among paid-tier clients. Many wholesale lenders run property tax quotes automatically on every broker-submitted file so they don't have to rely on the estimate the broker entered.
What are the options for New Construction and getting estimates on improved value?
The tax estimate will be based on homes surrounding the subject property.
***Property tax customization is not available in the Horizon tier. Tax line mapping can be customized beginning with the Stargazer tier, while additional property tax customizations beyond line mapping are available in the Enterprise tier and above**