Year-end Processing > Loan Year-end Processing > Requirements for 1098 Reporting

GOLDPoint Systems only reports 1098 mortgage information for loans with general categories or collateral codes described below (mortgage loans). These accounts will have 1098 information on their statements and will be reported to the IRS if the borrower paid $600 or more of interest and/or points (unless a certain option is used, see the following paragraphs). Hold Codes can also affect reporting. See information below or contact your GOLDPoint Systems account manager for more information.

If you would like to report interest of amounts less than $600, two features are available:

•Institution option SKCK will report all loans with less than $600 interest paid, provided all other general categories, collateral codes, etc., apply. If you would like to use this institution option, please submit a work order.

•On the Loans > Account Information > Account Detail screen > Statistics tab > Current & Prior Year-to-Date tab, you can control, on a loan-by-loan basis, which loans report interest paid less than $600 provided all other general categories, collateral codes, etc., apply. Checkmark Report Interest Under $600.00 for accounts whose interest you want reported.

Designating Accounts as Mortgages

For accounts to be designated as mortgage accounts and to have yearly mortgage interest accounted properly, the account must be set up with any of the following codes.

The account should have one of the following general categories. General categories can be adjusted on the account using the General Category field (LNGENL) the Loans > Account Information > Account Detail screen > Account tab.

General Categories
01	Real estate first mortgage
02	Second mortgage
10	Commercial real estate
11	Wrap loans - real estate
90	Contract collections

The account should have one of the following collateral codes. Collateral codes can be adjusted on the account using the Collateral Code field (LNCOLL) on the Loans > Account Information > Additional Loan Fields screen > Origination/Maturity tab.

Collateral Codes
1	Single family – new
2	Single family – previously occupied
3	Condominium – new
4	Condominium – previously occupied
5	2 to 4 family units – new
6	5 to 36 family units – new
7	37 or more family units – new
8	5 to 36 family units – previously occupied
9	37 or more family units – previously occupied
10	Non-residential (other improved real estate)
11	Combination home and business
12	Churches
13	Churches and single family
14	Housing for the aged
15	Developed building lots, acquisition and development of land and unimproved land loans – residential
16	Developed building lots, acquisition and development of land loans – non-residential
17	Developed building lots, acquisition and development of land, and unimproved land loans – multi-family (5 units or greater)
20	Secured by farm land
25	2 to 4 family units – previously occupied
40	Vacation property
109	Commercial loans – secured by real estate
200	Home improvement loans/second mortgages
201	Equity second mortgage
202	Equity second mortgage (revolving, open-ended loans)
203	Equity first mortgage (revolving, open-ended loans)
204	Equity first mortgage
205	Real estate secured – consumer loan or HIL based primarily on credit worthiness of the borrower
250	Mobile home loans – retail

Exceptions

Even if a loan has a proper general category or collateral code, there are some options that, when set, will exclude the loan from GPS reporting the 1098 Mortgage Interest to the IRS. The following options set on the loan will exclude the loan from 1098 reporting.

The following origination codes set up on the Loans > Account Information > Additional Loan Fields screen > Origination/Maturity tab will exclude the loan from being reporting by GPS.

Origination Code
15	Participation loans serviced by others (year-end statement is not created or reported to the IRS)
16	Loan purchased & serviced by others (year-end statement is not created or reported to the IRS)

The following Hold Codes set up on the Actions/Holds/Event Letters screen will also affect year-end 1098 reporting on a loan-by-loan basis as follows:

Hold Codes
26	Do not report to IRS (year-end statement is created)
39	Do not create year-end statements or report to the IRS
43	Do not print loan statement at year-end but do report 1098 to IRS
44	Create a year-end statement and report to the IRS (ignores all other criteria requirements, e.g., general category, etc.)

Hold Codes are added to a loan on the Loans > Account Information > Account Detail screen > Account tab. Origination Codes are added to a loan using the Loans > Account Information > Additional Loan Fields screen > Origination/Maturity tab.

Note:

You can also exclude some loans from year-end processing by payment method, general category, loan type, or hold code. Please submit a work order for any special requests. Some limitations may apply. Contact your GOLDPoint Systems account manager for more information.

	Next topic: IRS Forms and Corrections
	Previous topic: Year-end Processing Table