Providing Annual Tax and Interest Statement to Report Amount of Interest Received to Borrowers During the Previous Year, when the Reportable Amount is Less Than $600

Providing Annual Tax and Interest Statement to Report Amount of Interest Received to Borrowers During the Previous Year, when the Reportable Amount is Less Than $600

The purpose of this article is to provide instructions for providing customers with an Annual Statement when their loans do not meet the criteria for generating a 1099-B statement.


In Servicing Director, if you have a loan where the reportable amount was less than $600 in the previous year, then the standard, delivered 1098-B statement will not be produced for that borrower.

The 1098-B statement is produced only for loans where:

  • Reportable amount is greater than $600, or
  • PMI Paid is greater than $600, or
  • ARM Interest Reimbursed is greater than $600, or
  • There are any Points Paid

 

To provide a borrower with this information when the loan does not meet these qualifications, you will need to produce the substitute Annual Statement. The Annual Statement is a substitute annual tax and interest statement that you can mail to borrowers instead of the 1098-B statement. The statement is designed to fit into a #10 left-window envelope.

 

The Annual Statement event is found in Event Manager, System Administration category > Letters Group.

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