Section 221

Internal Revenue Service Reporting Requirements

221.01

What to Report

The Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must comply with Internal Revenue Service reporting requirements for:

  • reporting the receipt of $600 or more of interest payments from any Borrower BorrowerPerson who is the obligor per the Note. who is a natural person (IRS Form 1098);
  • filing Statements for Recipients of Miscellaneous Income (IRS Form 1099-MISC) to report payments of fees and related expenses to attorneys and other third parties in connection with foreclosure or liquidation proceedings in connection with a Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 and the related Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). ;
  • filing notices of Acquisition or Abandonment of Secured Property (IRS Form 1099-A) to report the acquisition of a Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). by foreclosure or acceptance of a deed-in-lieu or by a Borrower’s Borrower’sPerson who is the obligor per the Note. abandonment of a property; and
  • filing notices of Cancellation of Debt (IRS Form 1099-C) to report the cancellation of any part of a Borrower’s Borrower’sPerson who is the obligor per the Note. indebtedness.

Should the Internal Revenue Service change the reporting requirements in connection with any of IRS Form 1098, IRS Form 1099-MISC, IRS Form 1099-A or IRS Form 1099-C, the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must comply with those changed reporting requirements, notwithstanding anything to the contrary contained in this Chapter.  The Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. should contact Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! if it believes any portion of this Chapter to be in conflict with such Internal Revenue Service reporting requirements.

221.02

Filing IRS Form 1099 MISC

The Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must report all attorney (or trustee) fees paid by the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. to Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. -retained attorneys or trustees or to Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! -retained attorneys or trustees for handling foreclosure proceedings, by filing Form 1099-MISC (Miscellaneous Income) with the Internal Revenue Service and other parties.  This form must be filed in the Servicer's Servicer'sPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. name, using its Internal Revenue Service tax identification number.

If the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. pays for any expenses authorized by Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! for the maintenance, repair, or marketing of an REO REOA Property or interest in a Property acquired by Fannie Mae or on behalf of the MBS Trust, through a Foreclosure Event where title to a Property or interests in that Property are transferred to Fannie Mae or the MBS Trust. Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). , or when the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. pays directly any business that is not a corporation for recurring maintenance costs, minor repair costs, or routine costs in connection with an REO REOA Property or interest in a Property acquired by Fannie Mae or on behalf of the MBS Trust, through a Foreclosure Event where title to a Property or interests in that Property are transferred to Fannie Mae or the MBS Trust. Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). , the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must report such payments to the Internal Revenue Service.  To accomplish this, the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must prepare an IRS Form 1099-MISC (Miscellaneous Income) for the appropriate tax year and submit it to the Internal Revenue Service and to the individual payee.  This form must be filed in the Servicer's Servicer'sPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. name, using its Internal Revenue Service taxpayer identification number.

221.03

Notifying the Internal Revenue Service about Abandonments or Acquisitions (IRS Form 1099-A)
221.03A

When Required

The Internal Revenue Service requires that information returns be filed when Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! (or a third party) acquires an interest in a Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). in full or partial satisfaction of the Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 or when Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! or the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. has reason to know that a Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). has been abandoned.  The Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must file these notices on Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! 's behalf, using IRS Form 1099-A (Acquisition or Abandonment of Secured Property), for all applicable Mortgage Loans Mortgage LoansMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 (including Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 participations if Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! 's percentage ownership of such Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 is 50% or greater).

The Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must satisfy the reporting requirements for the “owner of record” (instead of on Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! 's behalf) when the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. purchased a delinquent Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 from Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! before the Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). was acquired by the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. in full or partial satisfaction of the Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 .

For purposes of filing these reports:

  • Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! (or the “owner of record”) acquires an interest in the Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). when any redemption period that follows a foreclosure sale ends without redemption rights being exercised (or when Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! accepts a deed-in-lieu of foreclosure);
  • A third party acquires an interest in the Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). at the foreclosure sale; and
  • Abandonment occurs when Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! or the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. has “reason to know” from “all facts and circumstances concerning the status of the Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). ” that the Borrower BorrowerPerson who is the obligor per the Note. intended to discard or has permanently discarded the Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). from use. The Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. , however, will have an additional three months before its reporting obligation arises if the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. expects foreclosure proceedings to begin within the three months after determination that abandonment has occurred.

After an event that triggers a reporting requirement occurs, IRS Form 1099-A must be filed on or before February 28 (or March 31 if filing electronically) of the year following the calendar year in which the event occurred.  The Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. also must furnish the Borrower BorrowerPerson who is the obligor per the Note. with an information statement on or before January 31 of that year.  The requirement for notifying the Borrower BorrowerPerson who is the obligor per the Note. can be satisfied by sending Copy B of a completed IRS Form 1099-A to the Borrower's Borrower'sPerson who is the obligor per the Note. last known address.  When the form is filed on Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! 's behalf, it must show Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! 's name, address, and federal identification number (52-0883107), and include a legend stating that the information is being reported to the Internal Revenue Service.  If it is filed by the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. on its own behalf or for the “owner of record,” the name, address, and identification number of the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. or owner of record, respectively, must be provided instead.

221.03B

Preparing IRS Form 1099-A

The Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. is responsible for completing the IRS Form 1099-A accurately, for filing it with the Internal Revenue Service, and for providing the information to the Borrower BorrowerPerson who is the obligor per the Note. and to Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! by the required dates.  If the Internal Revenue Service penalizes Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! because a Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. failed to file a return or filed an incorrect return or late return, Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! will require the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. to reimburse Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! for any penalty fees the Internal Revenue Service assesses (unless the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. can document that it met the filing requirements).

Information that must be reported on IRS Form 1099-A includes:

  • the Borrower's Borrower'sPerson who is the obligor per the Note. taxpayer identification number (the Social Security number if the borrower is a natural person);
  • the date of acquisition of an interest in the Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). or the date the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. acquired knowledge of the abandonment;
  • the outstanding UPB UPBUnpaid Principal Balance of the Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 ;
  • a general description of the Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). ; and
  • whether the Borrower BorrowerPerson who is the obligor per the Note. is personally liable for the debt and, if personally liable, the fair market value of the Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). at the time of acquisition.
221.04

Notifying the Internal Revenue Service about Cancellations of Indebtedness (IRS Form 1099-C)
221.04A

When Required

The Internal Revenue Service requires certain mortgage holders, including Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! , to file information returns when $600 or more of a Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 is cancelled.  Except as provided in  Part V, Chapter 2: Reporting and Remitting, Section 221.04D: Exceptions to IRS Form 1099-C Reporting , the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must file these returns on Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! 's behalf, using IRS Form 1099-C, for all applicable Mortgage Loans Mortgage LoansMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 (including Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 participations if Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! 's percentage ownership of such Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 is 50% or greater).  If, in the same calendar year, a Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 is canceled in connection with a foreclosure or abandonment of secured property, it is not necessary to file both Form 1099-A and Form 1099-C for the same Borrower BorrowerPerson who is the obligor per the Note. .  Only Form 1099-C need be filed, and the Form 1099-A filing requirement for the Borrower BorrowerPerson who is the obligor per the Note. will be met by completing boxes 4, 5, and 7 on Form 1099-C.

221.04B

Determining When a Debt Is Cancelled

A debt is cancelled (in whole or part) when any of the following occur:

  • discharge in bankruptcy under Title 11 of the U.S. Code;
  • receivership, foreclosure, or similar federal or state court proceeding makes the debt unenforceable;
  • the statute of limitations applicable to collecting the debt expires (if so determined by a court and any appeal period has expired), or expiration of the statutory period for filing a claim or beginning a deficiency judgment proceeding;
  • foreclosure remedies by law end or bar Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! ’s right to collect the debt (e.g., foreclosure by exercise of the “power of sale” in the Security Instrument Security InstrumentInstrument creating a lien or encumbrance on 1 or more Properties and securing the Loan Document obligations. );
  • probate or similar proceeding cancels or extinguishes the debt;
  • Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! and the Borrower BorrowerPerson who is the obligor per the Note. agree to cancel the debt at less than full consideration;
  • a decision or defined policy of Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! causes collection activity to be discontinued and the debt to be cancelled; or
  • expiration of a “non-payment testing period”.

The Internal Revenue Service presumes that a debt is cancelled during a calendar year if no payment has been received on the Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 during a period (the “non-payment testing period”) of 36 months, plus the number of calendar months when collection activity was precluded by a stay in bankruptcy or similar bar under state or local law.  The presumption may be rebutted, however, if there has been significant, bona fide collection activity at any time during the calendar year, or if facts and circumstances, existing as of January 31 of the calendar year following expiration of the 36-month period, indicate that the indebtedness has not been discharged.

221.04C

Preparing IRS Form 1099-C

The Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. is responsible for completing the Cancellation of Debt (IRS Form 1099-C) accurately, and for filing it with the Internal Revenue Service and providing the information to the Borrower BorrowerPerson who is the obligor per the Note. and to Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! by the required dates.  The form must be filed on or before February 28 (or March 31 if filing electronically) of the year following the calendar year in which the discharge of indebtedness occurs.

If the Internal Revenue Service penalizes Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! because the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. failed to file a return or filed an incorrect or late return, Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! will require the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. to reimburse Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! for any penalty fees the Internal Revenue Service assesses (unless the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. can document that it met the filing requirements).

The Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. also must furnish the Borrower BorrowerPerson who is the obligor per the Note. with an information statement before January 31 of that year.  The requirement for notifying the Borrower BorrowerPerson who is the obligor per the Note. can be satisfied by sending Copy B of a completed IRS Form 1099-C (or a substitute statement that complies with Internal Revenue Service requirements for substitute forms) to the Borrower's Borrower'sPerson who is the obligor per the Note. last known address, and the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must send Copy C to those states that require it.  When the form is filed on Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! 's behalf, it must show Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! 's name as the “Creditor,” Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! 's address and federal identification number (52-0883107), and include a legend identifying the statement as important tax information that is being furnished to the Internal Revenue Service.

Information that must be reported on IRS Form 1099-C includes:

  • the Borrower's Borrower'sPerson who is the obligor per the Note. name, address, and taxpayer identification number (the Social Security number if the borrower is a natural person);
  • the date the debt was cancelled;
  • the amount of the cancelled debt, which does not include interest or any amount received in satisfaction of the debt from a foreclosure sale or other means;
  • a description of the debt, such as “mortgage loan,” and a description of the Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). if a combined IRS Form 1099-C and 1099-A is filed;
  • whether the Borrower BorrowerPerson who is the obligor per the Note. is personally liable for the debt;
  • whether the debt was cancelled in bankruptcy; and
  • the fair market value of the Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). if a combined IRS Form 1099-C and 1099-A is filed.

If the cancelled Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 had an original principal amount of $10,000 or more, was originated after 1994, and involves Borrowers BorrowersPerson who is the obligor per the Note. who are jointly and severally liable for the debt, a separate information return for each Borrower BorrowerPerson who is the obligor per the Note. must be filed, and each return must report the entire amount of the cancelled debt.  If the Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 was originated prior to January 1, 1995, or if the original principal amount of the cancelled Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 was less than $10,000, and if there are multiple Borrowers BorrowersPerson who is the obligor per the Note. , reporting is required only with respect to the primary (or first-named) Borrower BorrowerPerson who is the obligor per the Note. .  In addition, only one information return is required, regardless of the origination date or the original principal amount, if the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. knows, or has reason to know, that co-Borrowers were husband and wife living at the same address when the Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 was originated, and does not know or have reason to know that such circumstances have changed when the Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 is cancelled.

221.04D

Exceptions to IRS Form 1099-C Reporting

Interest.  Interest need not be reported.  If it is reported as part of the cancelled debt, the IRS Form 1099-C instructions require that it be shown in a separate box on the form.

Non-principal amounts.  Cancellation of amounts other than stated principal, including penalties, fines, fees, and administrative costs charged to the Borrower BorrowerPerson who is the obligor per the Note. , need not be reported.

Release of a co-Borrower.  IRS Form 1099-C need not be filed when one Borrower BorrowerPerson who is the obligor per the Note. is released from a Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 as long as the remaining Borrowers BorrowersPerson who is the obligor per the Note. are liable for the full UPB UPBUnpaid Principal Balance of the Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 .

Guarantor or surety.  A guarantor or surety (i.e., any Guarantor GuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. or Key Principal Key PrincipalPerson who controls and/or manages the Borrower or the Property, is critical to the successful operation and management of the Borrower and the Property, and/or may be required to provide a Guaranty. executing a Non-Recourse Guaranty Non-Recourse GuarantyGuaranty executed by a Key Principal on Form 4501 series or Form 6015 series, or approved by Fannie Mae. or a Payment Guaranty Payment GuarantyGuaranty executed by a Key Principal on Form 4502 series or Form 6020 series, or approved by Fannie Mae. ) is not a Borrower BorrowerPerson who is the obligor per the Note. for purposes of the debt cancellation reporting requirements, so IRS Form 1099-C is never required.

221.04E

Coordination with Reporting Abandonments or Acquisitions

If, in the same calendar year, the Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 is cancelled in connection with the acquisition or abandonment of the same Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). securing the Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 , filing a timely and accurate IRS Form 1099-C will satisfy the requirement to file an IRS Form 1099-A.

221.05

Reporting via Magnetic Media

The Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must report IRS Forms 1099-C and 1099-A information on magnetic media and must do so on Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! 's behalf.  Even though the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. reports to the Internal Revenue Service on magnetic media, it is still responsible for providing a hard copy of the IRS Forms 1099-C or 1099-A, as applicable, to the Borrower BorrowerPerson who is the obligor per the Note. (Copy B) and to those states that require it (Copy C).  Copy B must be sent to the Borrower BorrowerPerson who is the obligor per the Note. no later than January 31.

The Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must review each Borrower’s Borrower’sPerson who is the obligor per the Note. Form W-9 for validity and request a new Form W-9 if any form is invalid.  A valid W-9 will include the Borrower’s Borrower’sPerson who is the obligor per the Note. name, tax identification number, date, and signature.  In preparing Forms 1099-C or 1099-A, the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must (i) utilize the IRS TIN Matching program and perform tax identification number matching for all United States non-exempt Borrowers BorrowersPerson who is the obligor per the Note. in all circumstances, (ii) notify Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! of any Borrower BorrowerPerson who is the obligor per the Note. that is identified as an unsuccessful TIN Match prior to preparing Form 1099, and (iii) follow up with any Borrower BorrowerPerson who is the obligor per the Note. whose name and tax identification number combination fail the IRS TIN Match.  The Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. should also provide to Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! its TCC (Transmittal Control Code) at the beginning of each year, which will allow Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! to communicate to the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. any errors on its 1099 filings.

The Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. does not need to send Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! a copy of the magnetic media filed by the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. with the Internal Revenue Service.  However, to ensure that Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! can identify the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. and the loan number for a specific Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 should the Internal Revenue Service contact Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! for additional information or clarification, the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must:

  • insert the following header information when the IRS Form 1099-C or 1099-A, as applicable, is filed on Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! 's behalf:
    • Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! on the first “Payer” line; and
    • the Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! loan number for the related Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 on the line for the “Payer's account number for Payee”; and
  • within thirty (30) days after filing with the Internal Revenue Service, send an email to Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! at [email protected], containing a summary of IRS Forms 1099-C or 1099-A, as applicable, to notify Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! what the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. reported to the Internal Revenue Service on magnetic media.