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Property Tax Funding Blog

Property Tax Loan Companies

Posted by Matt Longhofer on Thu, Aug 09, 2012 @ 17:08 PM

With the passage of the Property Tax Lender License Act (Texas Senate Bill 1520), which took effect September 1, 2007, the property tax lending industry has seen steady demand from Texas property owners.  The establishment of a licensing procedure and regulatory framework for property tax lenders has led to significant growth in the number of property tax loan companies.  Despite the growth in lenders the number of new tax loans originated remained relatively flat from calendar year 2010 and 2011 with 12,951 and 12,731 new loans originated, respectively.      

Property Tax Loan Companies in Texasproperty tax lender texas

As of the date of this article, there are 88 property tax lending companies with an active license; however, several lenders hold multiple licenses for their various locations or operating companies, thus the true number of active property tax lending companies is closer to 70.  The industry is mostly fragmented with many small companies, a handful of medium size companies, and a few large lenders – with the largest lender being a public company.   

Requirements for a Property Tax Loan Company

For a company to engage in Texas property tax lending, they must be licensed by the state of Texas through the Office of Consumer Credit Commissioner (OCCC).  The OCCC serves as the regulatory body of the tax lien lending industry.  The OCCC regulates the licensing of lenders, conducts periodic comprehensive examinations of licensed lenders, and requires that each licensed lender submit an annual report.  The OCCC also promulgates the content of certain required forms and disclosures and regulates allowable fees.   In addition to the OCCC licensing requirement, all loan officers for a property tax loan company must obtain a National Mortgage Loan Originators License (NMLS) in order to originate residential property tax loans. 

Property tax loan companies in Texas operate under section 32.06 of the Texas Tax Code, which covers tax liens and the tax lien transfer process.  Additionally, Texas property tax loan companies must comply with the rules and requirements prescribed in Chapter 351 of the Texas Finance Code and Chapter 89 of the Texas Administrative Code.    

Selecting a Property Tax Loan Company

While there are many licensed lenders in Texas, the business practices from lender to lender can vary widely.  If you are thinking about a property tax loan, we have a few questions to consider when picking a company to work with.  They are:

  • Did the loan officer take the time to explain the tax loan process fully and answer all my questions?
  • Is the company offering an affordable payment plan that fits my monthly budget?
  • Is the property tax loan company rated with the Better Business Bureau?  Do they have any complaints?  (Look beyond the rating and read the complaint history)
  • Will this company sell my loan or share my information with others?

If you’d like a no obligation consultation regarding your property tax situation, please contact one of our loan officers at 877-776-7391 or apply online at www.propertytaxfunding.com.  Property Tax Funding has helped over a thousand Texas property owners with low cost and affordable property tax loans. 

Topics: property tax lending

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