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Property Tax Expert, Trey Rome, On the Texas Legislative Session and the Property Tax Loan Industry in Texas

DALLAS, Jan. 24, 2023 /PRNewswire/ -- Trey Rome is president of the Texas Property Tax Lienholders Association (TPTLA) and is involved in the 2023 Texas Legislative Session. Rome is also founder and CEO of Home Tax Solutions, the largest property loan originator in Texas. Last year he won the "Outstanding Young Alumni Award" from Dallas' SMU Cox School of Business. Below are his opinions about the 2023 Texas Legislative Session and the Direction of the Property Tax Loan Industry.

The 2023 Texas Legislative Session

Sitting in on the Legislative session as president of the Texas Property Tax Lienholders Association, property tax relief is at the forefront of this session. With the Texas slush fund coffers overflows from significant and unbudgeted increases of sales tax and property tax revenue over the past year, politicians and Texans are looking for ways to get money back in the form of tax relief and reform. We are hoping this will help our fellow Texans experience some relief on tax bills. While the proposed language and posturing seem consequential, I believe it sounds better than the tangible relief it will deliver to property owners' wallets.

The Direction of the Property Tax Loan Industry in Texas

The property tax loan industry has been steady but has growth potential in the near future. As founder and CEO of Home Tax Solutions, all of us in the property tax loan industry borrow money from banks. However, the Federal Reserve System has been increasing interest rates. Hence, there will be increased costs of borrowing money because firms will be borrowing at a higher price; those costs will be passed to customers. The companies that have scaled and have access to low fixed rates attained in the capital markets will fare better than the lenders who borrow at floating rates from traditional banks. As a result, I expect to see increased industry consolidation. Loan portfolio growth has been challenged over the last couple of years due to high payoff rates (driven by low-interest rates to refi) and decreased originations due to more consumers able to pay their taxes with the cash from relief programs. We believe this trend will reverse in this recessionary environment. We expect a larger delinquent tax roll fueling growth and growing demand for property tax loans over the coming years.

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Francine Wittenberg Cashen

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SOURCE Home Tax Solutions

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