The First American Tax Service relies on the MC System to have the following information intact in each loan to be processed:

1. Correct Account Number
2. Correct Dealer Code in Field E-01
3. Correct Agency - ID Number (supplied by First American) in Field E-02
4. Correct Contract-Suff1x Code (supplied by First American) in Field E-11

Currently First American processes taxes by sending the user a billing tape and a hard copy listing of accounts to be billed. The MC program reads this billing tape and prints an exception report. After correcting any accounts that should not be exceptions, the user marks the remaining accounts on the hard copy sent from First American and returns this hard copy to First American.

Receive Audit File

This option reads in an Audit File from First American and compares accounts on Audit Tape against accounts on the program. Three reports are generated:

1. Account Numbers duplicated on MC System.
2. Accounts on Audit Tape but not on MC System
3. Accounts on MC System but not Audit Tape.

Receive Transaction File

This option reads in a Billing File, prepares the data for option 3, and generates the following report:

4. 00006 Duplicate Loan Numbers (any duplicates of accounts to be paid).

Exception Report

This option gives the user the ability to delete any accounts to be billed that should not be billed. A report is printed showing all accounts to be billed and if they have any reason to be exceptions:

5. 00006 Taxes Edit Report

The user takes this information and marks a hard copy sent from First American to indicate which accounts on the hard copy should not be billed. This hard copy report is to be sent back to First American by the user.

Process Payment

This is the last option and should be run after the exception report reflects the correct status of accounts to be billed or to be counted as exceptions. This option actually applies the billed amount to each account on the program.

Guide to Reports

1. Account Numbers Duplicated on MC System

Accounts where the escrow buckets have the same account number and same contract-suffix. Usually this problem will occur when neither escrow types have anything in the suffix field. To correct this problem, be sure the contract suffix (Field 11) has a unique contract suffix for each escrow type.

2. Accounts on Audit Tape but not MC System

These are accounts which are somehow not on the MC System anymore, or the tax service has an incorrect account number or contract suffix for the account. Or, the user has an incorrect contract suffix in Field 11 of the escrow file.

3. Accounts on MC System but not Audit Tape

These are accounts which qualify for the tax process, but which have either not been submitted to the tax service yet, or the tax service has a different account number or contract suffix for this account.

4. 00006 Duplicate Loan Numbers

A simple report of duplicate loan numbers. As with Report 1 above, these account duplications may be a result of blank or duplicate contract suffixes in Field 14 of the escrow file.

5. 00006 Taxes Edit Report (Exception Listing)

This is a listing of all accounts being considered for billing. If the account has anything missing or incorrect the report will flag the problem on one of the 9 Status Columns on the right-hand side. A description of the status indicators can be found in the Loan Servicing Manual. For an account to be billed properly it must appear on this report with no status indicators flagged.

Flow Chart