Quote from Eddy on January 31, 2024, 3:15 pm

Hello All,

We recently got a payoff for a Junior NPL we acquired. The borrower received a 1098 from the loan servicer which did not account for the entire amount of past due interest that the borrower paid. I contacted the loan servicer for this note, Madison, and they told me that they were only able to send a 1098 to include a portion of the past due interest the borrower paid because they only serviced the loan for a few months. The remainder of past due interest that was paid accumulated from prior servicers and they were not able to issue a 1098 for that amount.

Is this something that anyone has come across in the past? Any insight would be greatly appreciated. Just need to know whether or not we need to issue a 1098 directly or what the best course of action would be.

Thanks!

Regards,

Eddy