Posts Tagged ‘real estate mortgage interest’
Is all of your interest reported on your 1098? Maybe not if you had a Taylor Bean & Whitaker mortgage
Those that follow my blog know that I have written several times about the trials and tribulations of having a Taylor Bean & Whitaker loan at the time that HUD came in and closed them down. The last post had to do with Form 1098s and how to get them on your mortgage but I have recently found out that the information given by TBW on their website and from Bank of America are wrong. WRONG! WRONG! WRONG!
I refinance my VA loan with a streamline refinance last year and when I did so, I paid a funding fee to VA to do so. That funding fee is considered the same as mortgage insurance and should be reported on the Form 1098. In my case, this didn’t happen. I did calculate that the Form 1098 that I received from Bank of America did include the interest I paid in my one payment to TBW, but didn’t include the interest I paid as prepaid interest on my loan.
The following is from Publication 936 from the IRS:
You can treat amounts you paid during 2009 for qualified mortgage insurance as home mortgage interest. …….Qualified mortgage insurance is mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, or the Rural Housing Service and private mortgage insurance….
Mortgage insurance provided by the Department of Veterans Affairs is commonly known as a funding fee…….Rural Housing Service….as a guarantee fee….can be either be included in the amount of the loan or paid in full at closing….reported in box 4 of the Form 1098.
So, if you got a new FHA, VA or USDA loan during 2009 and Taylor Bean and Whitaker was the lender, you may not have all of your deductible interest reported on your Form 1098 from Bank of America or other lender that took over servicing of your loan when HUD closed TBW. The amount of this funding or guarantee or up front mortgage insurance can be found on your closing statement (HUD1) from the title company. I hope this information helps with your tax return filing.
If you have questions about your current loan or are looking to refinance, contact me (Fred Chamberlin, the Eugene Loan Guy). If you have a VA loan, let’s discuss the possibility of a streamline refinance, rates are doing well. I would be happy to help you mortgage needs. If you have questions about mortgage loans please contact me at 541-342-7576/541-221-3455 cell or by a-mail. I am a Senior Mortgage Advisor at Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. I am here to help you with your mortgage needs.
Those that follow my post know that I refinanced last year with Taylor Bean and Whitaker (TBW) on a VA ARM. It was shortly after that TBW was closed by HUD for problems with their lending policies. My loan was taken over by Bank of America and I had some difficulty finding out what to do with my payment. Now it is tax time and I, like many others, am wondering where my 1098 showing interest paid is from TBW.
So, I did some research, and this is what I found on the TBW website (yes, it still exists):
PLEASE NOTE: IF YOUR LOAN WAS TRANSFERRED TO ONE OF THE FOLLOWING SERVICERS IN 2009, ONLY ONE FORM WILL BE GENERATED: CENLAR, SAXON, OCWEN, BANK OF AMERICA, ROUNDPOINT OR DOVENMUEHLE or 21st CENTURY. . THE FORM, GENERATED BY YOUR NEW SERVICER, WILL COMBINE BOTH TBW AND THE NEW SERVICER’S INFORMATION BUT WILL NOT BE AVAILABLE ONLINE AT TBW’S WEBSITE. CONSEQUENTLY, IF YOUR LOAN WAS NOT TRANSFERRED TO ONE OF THE ABOVE REFERENCED SERVICERS, YOU WILL RECEIVE A YEAR END 1098 FORM FROM TBW AND THE NEW SERVICER, IF APPLICABLE.
So, the good news is that I have received the 1099 from Bank of America and “hopefully” it is correct. Now, all I have to do is fill out the tax returns and see what the latest tax code changes have done to me. I hope this information will help others that had TBW loans and were wondering what the status of their 1099 was. If this doesn’t satisfy your needs, try the TBW Website.
If you have questions about your current loan or are looking to refinance, contact me (Fred Chamberlin, the Eugene Loan Guy). I would be happy to help you mortgage needs. If you have questions about mortgage loans please contact me at 541-342-7576/541-221-3455 cell or by e-mail. I am a Senior Mortgage Advisor at Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. I am here to help you with your mortgage needs.