For all loans where borrower’s qualify for 100% property tax exemptions, clients are required to retain adequate escrow funds using the steps outlined below:

  • Veterans that are 100% disabled and have no other property ownership, are eligible to qualify with a $0 property tax exemption as long the 100% disability is documented and proof from the applicable county tax authority that the borrower qualifies for the tax exemption.
  • Loan must disclose the borrower is required to pay full property taxes throughout the loan origination, process, and closing. This is because until the borrower files and is approved for the tax exemption full property taxes will be required.
  • Any Seller collected property taxes on the Closing Disclosure not paid to the County Tax Office at closing must be collected into the Borrower’s escrow account on the Closing Disclosure.  They cannot be credited toward Borrower’s closing costs.
  • Gateway will purchase loans with the Borrower’s payment showing a full property tax payment.
  • For Gateway to purchase with Borrower’s payment showing $0 property tax exemption, you must include the Borrower’s filed tax exemption approval from the county and an updated payment letter with your loan documents.
  • After Gateway purchases the loan, Borrowers may also contact Gateway Customer Service at 1-877-764-9319 or and provide the filed tax exemption approval from the county.
  • Gateway Customer Service will review and make adjustments if applicable.
  • Gateway will ensure that taxes and insurance are collected in a manner than reflects the requirements on 12 CFR 1024.17, which in part states:
  1. The initial escrow account statement shall include the amount of the borrower’s monthly mortgage payment and the portion of the monthly payment going into the escrow account and shall itemize the estimated taxes, insurance premiums, and other charges that the servicer reasonably anticipates to be paid from the escrow account during the escrow account computation year and the anticipated disbursement dates of those charges. The initial escrow account statement shall indicate the amount that the servicer selects as a cushion. The statement shall include a trial running balance for the account.

Please direct any questions to your Regional Sales Manager