Was Taylor Bean and Whitaker the lender on your new FHA, VA or USDA loan last year? If so, it is possible the Form 1098 you received from the current servicer does not list all of the interest you paid last year. Taylor Bean and Whitaker was closed last year by HUD for discrepancies in their reporting, now it appears this is being carried forward.
I refinance my VA loan with a streamline refinance last year and when I did so, I paid a funding fee to VA to do so. That funding fee is considered the same as mortgage insurance and should be reported on the Form 1098. In my case, this didn’t happen. I did calculate that the Form 1098 that I received from Bank of America did include the interest I paid in my one payment to TBW, but didn’t include the interest I paid as prepaid interest on my loan.
The following is from Publication 936 from the IRS:
You can treat amounts you paid during 2009 for qualified mortgage insurance as home mortgage interest. …….Qualified mortgage insurance is mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, or the Rural Housing Service and private mortgage insurance….
Mortgage insurance provided by the Department of Veterans Affairs is commonly known as a funding fee…….Rural Housing Service….as a guarantee fee….can be either be included in the amount of the loan or paid in full at closing….reported in box 4 of the Form 1098.
Although not listed above, this would also apply to the Up Front Mortgage Insurance Premium (UFMIP) paid on all FHA loans. This number can be found on your closing statement from the title company. So, if you got a new FHA, VA or USDA loan during 2009 and Taylor Bean and Whitaker was the lender, you may not have all of your deductible interest reported on your Form 1098 from Bank of America or other lender that took over servicing of your loan when HUD closed TBW. I hope this information helps with your tax return filing.
Contact Me
If you have questions about your current loan or are looking to refinance, contact me (Fred Chamberlin, the Eugene Loan Guy). If you have an FHA or VA loan, let’s discuss the possibility of a streamline refinance, rates are doing well. I would be happy to help you mortgage needs. If you have questions about mortgage loans please contact me at 541-342-7576/541-221-3455 cell or by a-mail. I am a Senior Mortgage Advisor at Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. I am here to help you with your mortgage needs.
