Property Tax Relief Contributes to Record Escrow Refunds

Property Tax Relief Under Governor Scott Walker Contributes to Record Escrow Refunds for WHEDA Borrowers

2015 refund checks total more than $1.4 million

The annual escrow analysis of single family mortgages by the Wisconsin Housing and Economic Development Authority (WHEDA) shows a record number of WHEDA borrowers received escrow refund checks totaling more than $1.4 million, following four consecutive years of property tax cuts under Governor Scott Walker. The checks total $1,486,855, an average of $274 per household. In 2014, WHEDA borrowers received escrow refund checks totaling $631,767.

“Our work to reduce the tax burden, including reforms that offer flexibility to local governments, are working, as property taxes on a typical home in 2014 were less than they were in 2010, and our state budget ensures property tax bills will be even lower the next two years,” said Governor Scott Walker. “When you put more money in the hands of taxpayers, they in turn can invest that money into our economy.”

The escrow funds are used to pay WHEDA borrowers’ property taxes and homeowner’s insurance. A total of 5,428 borrowers received their checks in February.

“WHEDA is delighted a record number of our valued customers are benefitting from escrow refund checks,” said WHEDA Executive Director Wyman Winston. “That’s great news for hardworking Wisconsin families and our state economy that continues to show growth.”

For more than 40 years, WHEDA has been Wisconsin’s housing leader, providing affordable, fixed interest rate mortgages to low- and moderate-income individuals and families to purchase a home. WHEDA has helped 118,000 Wisconsin residents realize the dream of home ownership.

For each WHEDA mortgage, WHEDA receives real estate tax information through a third party vendor. WHEDA collects funds from its borrowers as part of the monthly mortgage payment to pay for property taxes and homeowner’s insurance. Funds collected are held in escrow until payment is made to the insurance companies and the taxing authorities by WHEDA. In the spring of each year, WHEDA analyzes escrow fund balances and if too much money has been collected, WHEDA mails an escrow refund check to the borrower.

WHEDA is a public body corporate and politic created in 1972 by the Wisconsin Legislature that provides low-cost financing for housing, small business and agricultural development. Since 1972, WHEDA has financed more than 77,000 affordable rental units, helped more than 118,000 families purchase their first homes and made more than 29,000 small business and agricultural loan guarantees. For more information, visit wheda.com or call 1-800-334-6873.