Ernst Publishing Company, an authority on land recording requirements for almost two decades processing more than 120 million transactions annually, has automated the recording of buyer-seller tax splits for all new purchases that appear on the Good Faith Estimate (GFE). Ernst was one of the first companies to automate splits—the division of the tax bill between the buyer and seller—and to integrate the data into calculations for the purchase market in the U.S.
In several U.S. states, the splits are statutorily mandated, but in others the splits are customary, and reflect an interpretation of statute and they are not mandated.
“As a result, the splits have posed a significant problem for lenders, but one they could work around,” said Gregory E. Teal, president and chief executive of Ernst Publishing Company. “That changed with RESPA because splits needed to be recorded accurately on the GFE.”
The concern has been that the allocations between buyer ands seller would not be accurately recorded on the GFE, and that might mean additional expense for lenders.
“This service ensures that lenders no longer have to worry about that exposure,“ said Teal. “Our technology team developed a solution that addresses the issue.”