Published in YourNews

By Justin Baranoff – April 28, 2025

Over half of executives polled expressed frustration with sub-servicers acting as middlemen rather than directly handling transactions with agencies

BOCA RATON, Fla. – Autoagent, the leader in escrow tax and government payment processing, today announced results of its recent survey conducted among more than 2,500 mortgage industry executives.

The online survey, carried out in March 2025, aimed to gauge the challenges faced by mortgage lenders in managing escrow tax payments and their interactions with sub-servicers in the process.

The survey revealed several key insights into the current state of escrow management within the mortgage industry:

Challenges in Managing Escrow Payments: A significant portion of respondents identified rising costs (39.8%), staffing limitations (11.7%), regulatory compliance (29.1%), and inefficient processes (21.4%) as major hurdles in managing escrow-related payments for property taxes.

Operational Costs: Approximately 40.8% of respondents indicated that escrow management accounts for 21%-30% of their overall operational costs.

Frustration with Sub-Servicers: Over half of the executives (50.5%) expressed frustration with sub-servicers acting as middlemen rather than directly handling transactions with agencies.

Impact of Federal Regulations: Federal regulations were noted as having a very significant impact on operational costs by 59.2% of respondents.

Management of Property Tax Payments: The majority of organizations manage property tax payments through a combination of in-house teams and third-party vendors (40.2%).

Importance of Escrow Management Features: Key features sought in escrow management platforms include user-friendly interfaces (26.2%), real-time data access and reporting (19.4%), scalability (21.4%), integration with existing systems (18.5%), and vendor support and training (20.4%).

“The results of this survey highlight the critical challenges mortgage lenders face in managing escrow tax payments,” said Steven Pals, Director of Business Development at Autoagent. “It underscores the need for a more direct relationship with the servicing process to enhance efficiency and reduce costs. Direct servicing not only helps lenders reduce costs and maintain control but also positions them to respond swiftly to changing market dynamics.”

Remaining competitive in today’s business climate is important for mortgage lenders, as the industry is characterized by rapid changes and intense competition. With evolving regulations, fluctuating interest rates, and shifting consumer expectations, lenders must be agile and innovative to stay ahead.

By leveraging technology and optimizing internal processes, lenders can enhance their service offerings, improve customer satisfaction, and differentiate themselves from competitors. This proactive approach is essential for sustaining growth, building a strong market presence, and ensuring long-term success in a highly competitive environment. Autoagent’s EscrowCloud solution eliminates hundreds of hours spent each year on manual bill requests, payment troubleshooting, and refund issuance. The platform enforces proprietary processes that solve common payment issues from tax servicers, mortgage companies, banks, and other property management/escrow groups, reducing refunds by 95%.

Autoagent remains dedicated to supporting mortgage lenders by offering innovative escrow management solutions that simplify operations, ensure compliance, and improve overall efficiency.

For more information about these survey results and Autoagent’s services, please visit www.autoagent.com.

About Autoagent

Since 2001, Autoagent has been transforming government payments from a necessary chore into a seamless civic interaction. Its complementary innovations, EscrowCloud and MuniciPay, bridge the gap between thousands of government agencies and millions of constituents, fostering trust and efficiency. Autoagent revolutionizes government revenue collection with visionary solutions, precision execution, and meticulous attention to detail. For more information, please visit www.autoagent.com.