We are having an internal debate and I was hoping to get some clarity reading the PMI reportable amount on the 1098. I am trying to determine if (on Box 5 "Mortgage Insurance Premiums" of the 1098) should reflect the amount that we disbursed and paid to the PMI company OR the amount that the borrower paid to us. Typically, since the PMI is paid through the monthly escrow payment, one would think that the amount disbursed and the amount paid to us would be the same. However, in some cases the investors are requiring us to pay a future PMI payment, but they are collecting that monthly payment after the sale.

The 1098 instructions for Box 5 are not clarifying the issue. Thank you for any feedback.

Unless Congress extends the deductibility of mortgage insurance for the 2019 tax year, your question might be moot. Ask you accounting firm - they should have tax experts on staff.