Entry Level
What is a 1098 form?
A 1098 form, also known as the Mortgage Interest Statement, confirms the amount of interest a person has paid on a mortgage, as well as other possibly tax deductible items.
**Why might the interest on a 1098 be lower than the previous year?
The client was in forbearance or paid fewer months of interest; as amortization reduces the balance, interest decreases each year.
**Why doesn't the 1098 show all names on the loan?
The 1098 lists the client in the first position; co-borrowers should consult a tax advisor about interest claims.
**What tag should you use when a client contacts us with questions about their 1098 due to forbearance?
**Why does a VA loan have PMI on the 1098 statement when the client doesn’t actually pay PMI?
It’s the VA Funding Fee, not PMI.
A client will receive a 1098 when they have paid $____ or more in interest within a calendar year.
$600.00
**When are 1098 rush requests allowed?
Only for escalated scenarios with leader approval.
**How can a client update their mailing address for the following year’s 1098?
Update the mailing address in RMS or navigate to MAS1/ADD2 in Director 7.
**Why is the principal balance on the 1098 higher than expected?
The principal balance shows as of January 1 of the tax year, or if originated during that year, as of the origination date.
Client is asking for us to change the name positions on the 1098. Can we do that?
No, the 1098 will reflect the name order on the loan and signed closing documents.
** What should you do if a client can’t print their 1098?
Document the reason they can’t print; assist them in viewing or downloading the form online rather than requesting a rush print.
True or False: The 1098 lists our clients full social security number.
False- It only shows the last 4.
**How can you confirm if a client is set up for paperless 1098 delivery?
Check MAS1/IRS1 in Director 7 → “E-Consent 1098/1099” section or Customer Information screen under Paperless Documents.
**Will a client in forbearance receive a 1098?
It depends on length of forbearance if they made no payments, they may not receive one; if they resumed or had a disaster forbearance, they will.
**What should you do if there’s a confirmed error on a client’s 1098 (name, mailing address, SSN, or mortgage interest)?
Set a YECORR task with correction details (not for switching order of names).
What box on the 1098 form will show the Mortgage Origination Date?
Box 3
** When can a request be submitted for a 1098 to be mailed?
All 1098s are mailed by 1/31, we cannot request one to be sent out until 2/1.
**Why don’t the taxes or HOI amounts on Page 2 match what was paid out?
Only escrow disbursements within the year are shown, excluding closing payments. Tax or HOI refunds are also deducted from the paid out balances. But no worries! Escrow information is not reported to the IRS.
Client recently transferred to Rocket from Mr. Cooper. Client is stating that our 1098 interest paid is lower than it should be. What do we advise?
Why would a client receive a B-Notice?
Rocket Mortgage sends a B-Notice directly to the client when the IRS advises there is a discrepancy with the information they have for the client and what we reported. Discrepancies are commonly due to name changes, deaths, or incorrect information provided by the client.
True or False: Escrow Information (page 2) is reported to the IRS.
False
**Where can you find a client’s points paid on a refinance loan?
Points on a refinance are not reported on a 1098. They are only reported when the client completes a purchase of a principal residence. For a refinance- they’re on Page 2 of the Closing Disclosure, Section A: Origination Charges
**What should you do if a client believes incorrect information was reported on their 1098?
Review the transaction history and set a YECORR task if needed; open Client Relations → Client Follow-Up and note the discrepancy.
Client received a 1099-INT and is asking why. What do you advise?
If client earned interest on escrow of $10 or more within this calendar year, they will receive a 1099-INT.
Contractor calls stating he received a 1099-MISC and wants to know why. What do you advise?
The IRS Form 1099-MISC is used to report fees of $600.00 or more that Rocket Mortgage paid to third-party vendors, contractors, or clients. This would typically be for insurance loss.