What's New for the 1098 Form

Get ready for a few changes for tax year 2016… at least when it comes to your 1098 (Mortgage Interest Statement) form. For people who manage and service loans, new reporting requirements will be in effect. Luckily, they're straightforward:

·      Starting January 1, 2017, all 1098 forms given to payers MUST include the address or description of the mortgaged property.

·      Also new to the form in '17:

o   Reporting the outstanding mortgage principal (as of January 1, 2016)

o   Including the mortgage origin date

o   Indicating paid mortgage insurance premiums of $600 or more

The 1098 format has also changed. In previous years, three forms were on a page. The newest version will have only one per page.

These aren't dramatic changes for lenders, but you should be aware of them. Moneylender Professional loan servicing software plans to issue a patch for the new 1098 form in November. Look for it so you'll be ready when tax time rolls around.