Include late charges paid with YTD interest paid on 1098 Annual Mortgage Statement?

(Institution option IRSL)

Indicate on the order form if you want any late charges paid during the last calendar year to be included with interest paid for mortgage loans. Late charges are reported to the IRS as interest paid (if interest is reported to the IRS for that loan). Some states require that paid late charges be included with mortgage interest.

Current and prior year late charges are showed on the Current & Prior Year-to-Date tab on the Loans > Account Information > Account Detail screen > Statistics tab.

Are you reporting interest paid less than $600?

(Institution option SKCK)

If you would like to report interest amounts of less than $600 on all applicable mortgage loans, select this option. The loan must meet the GOLDPoint Systems coding requirements to be included. See Requirements for 1098 Reporting for additional information, as well as an account-level options.

The IRS only requires you report interest amounts above $600, but some institutions like to send mortgage-interest statements for any amount of interest paid by the borrower. This option is for both the statement and the mailer.

Add deferment interest to amount reported to IRS?

(Institution option IRSD)

If you would like deferment interest (charges) on mortgage loans to be included in the interest amount paid that year and reported to the IRS, this option must be set.

See also: Loans > Deferments screen.

Pay interest on reserves at year-end?

(Institution option SKLR)

Some states (e.g., California) require interest be calculated and paid on accumulated reserve amounts. Interest paid on reserves can be reported to the IRS, but it is not required. If you want to skip the reporting of reserve interest to the IRS, leave this box blank and your GOLDPoint Systems account manager will set up institution option SKLR for you.

There is a loan-level option (Pay Interest on Reserve 1/2? on the Loans > Account Information > Reserves > Account Reserve Detail screen > Reserve Payment tab) that allows interest to be paid on all accounts with reserves, then compiled on a 1099-INT form to be reported to the IRS at year-end on behalf of the borrower. Form 1099-INT is generated in the Deposit system.

WARNING: If the loan is not set up properly, interest will not be paid on that account's reserves. The Pay Interest on Reserve 1? and Pay Interest on Reserve 2? fields on the Account Reserve Detail screen must be checked. The interest rate and date last accrued must be set up for each loan on the Account Reserve Detail screen > Reserve Payment tab. Because 1099-INT is cumulative by Social Security number, you will need to coordinate this information with your deposit department.

Additionally, institution option GLJX stores the general ledger clearing account number. This is the interest expense general ledger account that is debited when reserve 1 or 2 interest is credited to loans. Your GOLDPoint Systems account manager can help you set up that account in the Autopost accordingly.