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X12 transaction guide · Finance

EDI 245 Real Estate Tax Service Response

The X12 document a real estate tax service uses to report property tax information to mortgage lenders and servicers.

Sent by
Real estate tax service provider
Received by
Mortgage lender or servicer
Standard
ANSI ASC X12

What is an EDI 245?

The EDI 245 Real Estate Tax Service Response is the ANSI X12 transaction set, issued as a draft standard for trial use, that establishes the format for responses from real estate tax services.

Mortgage servicers often pay borrowers' property taxes from escrow accounts, or must confirm that borrowers pay them. Tax service providers monitor tax bills and payments for each property and report amounts due, due dates and delinquencies, so servicers can pay on time and protect the lender's lien position.

How the EDI 245 worksDiagram of the EDI 245 Real Estate Tax Service Response. Real estate tax service provider sends it to mortgage lender or servicer. It usually starts the exchange. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment) and detail: the required HL loop with HL (Hierarchical Level). 5 optional loops are listed by their first segment.How the EDI 245 worksReal Estate Tax Service Response: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 245SENDERReal estate tax serviceproviderRECEIVERMortgage lender orservicer997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code MEGS … GETransaction set 245ST … SEHEADINGBGNBeginning Segment+ 1 optional loop, starting with:NM1DETAILRequired loop HL · repeats many timesHLHierarchical Level+ 4 optional loops, starting with:NM1NX1TDTAMTBlue box: required loop. Optional loops are listed by the segment that starts them; when a loop is used, that first segment is required. Optional segmentsoutside loops are not drawn.Structure: required segments and loops in the X12 008010 listing for the 245. Your trading partner's implementation guide adds its own requirements.
How the EDI 245 worksDiagram of the EDI 245 Real Estate Tax Service Response. Real estate tax service provider sends it to mortgage lender or servicer. It usually starts the exchange. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment) and detail: the required HL loop with HL (Hierarchical Level). 5 optional loops are listed by their first segment.How the EDI 245 worksReal Estate Tax Service Response: who sendsit, where it fits and what the standard marksrequired1 WHERE IT FITSUSUALLY FOLLOWSStarts the exchangeEDI 245SENDERReal estate taxservice providerRECEIVERMortgage lenderor servicer997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code ME (GS … GE)Transaction set 245 (ST … SE)HEADINGBGNBeginning Segment+ 1 optional loop, starting with:NM1DETAILRequired loop HL · repeats manytimesHLHierarchical Level+ 4 optional loops, starting with:NM1NX1TDTAMTBlue box: required loop. Optional loops are listedby the segment that starts them; when a loop isused, that first segment is required. Optionalsegments outside loops are not drawn.Structure: required segments and loops in the X12008010 listing for the 245. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 245, to whom, and which documents usually come before and after it. The lower part shows what X12 release 008010 itself requires: the envelopes around the 245 and the segments and loops the standard marks as required, area by area. Optional loops are listed by the segment that starts them rather than drawn in full. This is the standard's minimum, not a trading partner's requirement: each partner's implementation guide usually makes some optional loops mandatory, restricts the codes and may use a different release.

Expand diagram Download SVG

When it is used

  • Reporting property tax amounts and due dates
  • Reporting delinquent property taxes
  • Supporting escrow disbursements

Where it fits in the document flow

This document 245 Real Estate Tax Service Response
Usually followed by 997 Functional Acknowledgment

Structure

Mandatory segments in the 245 (X12 release 008010)

The segments X12 release 008010 marks as mandatory at their level, in order. Segments inside optional loops are needed only when the loop is used. This is the standard's requirement, not your trading partner's: each partner's implementation guide names the release it uses, adds the optional segments it requires and restricts the values. The requirement status comes from one published X12 reference listing and has not been checked against a second source.

  • ST
  • BGN
  • NM1
  • HL
  • NX1
  • TDT
  • REF
  • AMT
  • SE

Practical example

The 245 in practice

A servicer contracts a tax service to monitor taxes on its loans. Before each tax cycle, the tax service sends a 245 with the amount due, due date and taxing authority for each property. The servicer disburses the taxes from escrow and flags non-escrowed properties with delinquent taxes.

Implementation

Implementation considerations for the 245

  • Identify properties with parcel numbers the authorities use.
  • Report due dates early enough for disbursement.
  • Flag delinquent property taxes promptly.
  • Reconcile reported amounts with escrow balances.

How ECOM helps

Automate the 245 with ECOM

Industry

Financial Services

Secure file transfer and B2B integration for banks and financial institutions.

Solution

Financial Document Automation

Automate invoices, remittances, payment files and bank statements from capture to posting.

Solution

EDI Integration

Exchange X12 and EDIFACT documents with partners and integrate them directly with your ERP.

More general questions about EDI are answered in the EDI FAQ.

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