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#2229293 - 01/17/20 03:53 PM Form 1098 for 2019 - Box 2
PA Escrow Offline
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Joined: Mar 2004
Posts: 8
For a rescindable (and 1098-reportable) closed-end mortgage transaction originated during 2019, what amount are you reporting in Box 2 - the balance as of the note date (zero) or the balance as of the date the rescission period expires (which is the date we are initially accruing interest)? Our Core vendor has opted for the former. Thanks in advance for your input.

Box 2. Outstanding Mortgage Principal
Enter the amount of outstanding principal on the mortgage
as of January 1, 2019. If you originated the mortgage in
2019, enter the mortgage principal as of the date of
origination. If you acquired the mortgage in 2019, enter
the outstanding mortgage principal as of the date of
acquisition.

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#2229294 - 01/17/20 03:58 PM Re: Form 1098 for 2019 - Box 2 PA Escrow
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 80,336
Galveston, TX
Personally, I think they are idiots. Why would they be paying interest on a mortgage that has a $0 balance?
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2229335 - 01/17/20 10:03 PM Re: Form 1098 for 2019 - Box 2 PA Escrow
TomS Offline
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Joined: Jan 2004
Posts: 315
USA
"enter the mortgage principal as of the date of origination."

I would argue that the loan isn't truly originated until the funds have been disbursed.
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