Include service released loans?

If you have sold loans to another institution, and you want to send a 1098 to the borrower for interest collected during the months your institution serviced the loan during the year, check Yes on the Setup Form.

Be sure you coordinate with the purchasing lender to ensure you don't both report for the same period. Normally, the seller reports from January 1 of this year up to the date of service release, and the buyer reports from the date of purchase to the end of the year (December 31).

Some institutions ensure that the borrower only gets one 1098 form. Therefore, all interest collected this year is carried over to the new lender. This way, the new lender sends one 1098 form with the total amount of interest paid that year. If this is the case for your institution, leave this box blank.

Are insurance finance charges reported to IRS?

This option is only for precomputed mortgage loans (payment-method-3-backing mortgage loans). The finance charges on insurance policies (INNORG) can be included as paid interest (combined with LN78OI) on precomputed mortgage accounts. In other words, the finance charges on insurance policies will be added to the amount of interest paid by the borrower for the year and reported to the IRS as mortgage interest, unless this institution option is off.

Your GOLDPoint Systems account manager can help you set or unset this option. Some states require finance charges on insurance policies on precomputed loans (backing a mortgage) to be included with interest paid for 1098 filing.