00:00John, I'm excited to talk to you today about Digital Tax Forecasting Insights.
00:05It seems like there's a lot of exciting things that are available through this platform.
00:09So talk to me a little bit more about why Cotality came out with Digital Tax Forecasting Insights and who it's built for.
00:18Yeah, a couple of years ago, a number of our clients came to us with this problem.
00:23And really the problem was that servicers find out way too late about tax changes.
00:30And they needed a way that we can actually forecast and predict some of the tax amounts.
00:35So Cotality took that problem and our end solution here is the Tax Amount Forecasting Insights.
00:43And John, talk to me a little bit more about how this technology has been rolled out or who's using it and what are some of the early benefits that you've seen?
00:53Yeah, so Tax Amount Forecasting Insights is available through the digital tax portal.
00:58So our clients can access it relatively easy.
01:03And really the initial use case is to help with cash flow and to identify those escrow shortages well in advance of tax cycles to solve the cash flow problem.
01:17Sounds like a great problem to eliminate from this process that can really make the overall experience much, much better for people on both sides.
01:26Yeah, and that's our hope. And we're working with our clients today to really test out the return on investment for the product and to make sure it solves that particular use case.
01:38I know we have a lot to talk about with this exciting dashboard that you have.
01:42So take us through the demo of Digital Tax Forecasting Insights.
01:45Yeah, Digital Tax Forecasting Insights is available to the digital tax portal.
01:51And really the reason we created the product was to solve for the large amount of increase in property tax and insurance that the servicers were seeing,
02:00which was causing escrow shortages and a lot of stress on the industry.
02:04So you can go to the forecasting tab and this will bring you to the main screen where you can go to the upload file tab and this will give you a template that you can download with the needed information.
02:22And that information is primarily the escrow information on the tax and insurance piece.
02:29And once you have that, you can upload the file.
02:33Right through the portal and then within 24 to 72 hours, depending upon the size of the file, the results will be available and we'll go look at the what the results look like.
02:45And you can see this portfolio that was uploaded is a multi-state portfolio.
02:53So we've got information on five states here.
02:56And if you go to the left, you can see the total forecasted loans and the forecasted tax amounts.
03:03And then we also break out the tax amounts into taxes and insurance and taxes only.
03:09And then if you want to dive deeper, you can you can go into a specific state and we can see the specific counties.
03:22And then you can get the details for each of those counties, loan count, forecasted amounts and shortage amounts.
03:30And that's what's available through Tax Amount Forecasting Insights, first iteration.
03:39John, thank you for taking us through what looks to be a very cutting edge dashboard and an advanced forecasting model.
03:47So I have to ask, can you give us some more information about where the forecasts are coming from?
03:53Yeah. So Catality's tax forecasts are generated from a model that simulates how the taxing authorities calculate their property tax.
04:02The model uses market value, home price index at a zip code level, and we get those updated those updates on a monthly basis.
04:13It also incorporates historical tax rates from the assessor data.
04:17We go back 10 years and take an average, and then it ingests the service of provided escrow and disbursement data.
04:25And then finally, we leverage Catality's CLIP property identifier, which links multiple data sets to the model for millions of parcels.
04:36And would homeowners be notified if their tax bill is increasing?
04:40Yeah, the first iteration was really designed to help with the cash flow problem and identifying those shortages.
04:46But in talking with a number of clients, they do want to use it to give their borrowers a heads up on tax increases.
04:55Sounds like a really exciting future use case.
04:58So I have to ask a little bit more about who's using Digital Tax Forecasting Insights now.
05:05And you already teased us a little bit on what's next, but what else is on the agenda?
05:09Yeah, so today we have eight clients in the early adopter program.
05:14And sometime this year, we will be opening it up for additional clients.
05:20The eight clients right now make up about 7.2 million loans in that category.
05:26And what's really coming up on the roadmap is next we'll be doing, clients will have a download capability off of this site that they can download the data.
05:36And next, something really that we're really excited about is insurance forecasting, because as much as we've seen property tax increases, we've seen insurance increase even more.
05:49So we are currently working on that.
05:52Well, John, thank you for joining me today.
05:54And thank you for sharing information about Cotality's Digital Tax Forecasting Insights.
06:01It seems like a very exciting platform now, but it also seems like there's much more to come from you all in the future.
06:07To our audience, for information about Digital Tax Forecasting Insights, click the link below.
06:12Thanks for joining me, John.
06:14Great. Thank you.
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