What year-end statement should I expect from you?
Depending on your account activity last year, you may receive the following IRS Form from us:
- Form 1098: Reports interest we received on a mortgage.
- Form 1099-C: Reports when a debt is canceled, forgiven, or discharged. This includes if a modification was completed which includes eligible principal forgiveness.
- 1099-INT: Reports interest income earned in an escrow account.
What is a Form 1098 Mortgage Interest Statement and why do I need it?
IRS Form 1098 details interest paid on a loan in the past calendar year. The form includes:
- Lender's name, address, phone number, and taxpayer identification number
- Primary mortgagor's name, address, and taxpayer identification number
- Amount of mortgage interest paid to and received by the lender
- The total amount of outstanding mortgage principal
- Mortgage origination date (i.e., your closing date)
- Amount refunded in overpaid interest, if applicable
- Mortgage insurance premiums paid
- Points paid on the purchase of a principal residence (one point is equal to one percent of the total amount of your mortgage)
- Property address or description
- Number of properties securing the mortgage
- Date mortgage acquired by the lender
Who receives Form 1098?
If we serviced your mortgage in 2024 and you are the primary mortgagor, meaning the name of the first Note signer, you will receive a Form 1098 reporting interest paid during that time in accordance with IRS guidance. This includes all mortgages with at least $600 in interest and points combined paid to us during the 2024 calendar year.
My mortgage transferred from one servicer to another in the past year. Who will send my year-end statement?
Typically, you should receive a statement from each servicer for the time they serviced your account. Mortgages with at least $600 in interest and points combined paid to a servicer during the calendar year should receive a year-end statement from that servicer, in accordance with IRS guidance.
Why is there a difference between the interest paid for my loan and interest reported in my Form 1098?
In general, unless you have an adjustable-rate mortgage (ARM), the percentage of your monthly mortgage payment applied as interest decreases as you repay your principal, or the amount initially borrowed to purchase your property. As the amount due in interest decreases, the amount applied to your principal increases. To see how the ratio of principal to interest changes in your monthly payment throughout the life of your loan, check your Amortization Schedule—log into your account via our website or mobile app and go to My Loan.
There are many other reasons the amount you pay in interest may change year-to-year. E.g., if you have an adjustable-rate mortgage (ARM), your interest rate may have increased.
I have received more than one Form 1098. Do I need all of them?
It depends on the reason you received more than one for the same calendar year. A few potential scenarios:
- Your mortgage was transferred to another loan servicer. Typically, you will receive a Form 1098 for each servicer for the time they serviced your mortgage. You will likely need both forms. Please see the Servicing Transfers section below for more information.
- You refinanced your mortgage. You will receive one Form 1098 for interest paid prior to refinancing, and another for interest paid after refinancing. You’ll likely need both forms.
- A correction was made to the Form 1098 originally sent to you. In this case, you should use the corrected version instead of the previous version you received. The corrected form will have an X in the box labeled CORRECTED, which appears at the top.
I received a corrected Form 1098 from you. Why?
Inaccurate or outdated information was identified in your original 1098, so a corrected statement was provided. This could be a result of an error or the IRS issuing updated guidance that affected your statement.