Bank will Make 1st Payment 1099 Help

Posted By: 2old2care

Bank will Make 1st Payment 1099 Help - 12/05/12 09:32 PM

We are considering offering a special for our VA Mortgage Loan product. If a Veteran is approved for his VA Loan with or bank (of course) we will pay the first scheduled mortgage payment up to $1,500. This would include P&I and Escrow.
Thoughts on 1099 Misc and/or 1099 for the Interest?
Posted By: rlcarey

Re: Bank will Make 1st Payment 1099 Help - 12/05/12 11:24 PM

I would be more concerned with VA rules first. I have no idea if this would be allowed or not. If it is part of your legal agreement with the customer, it would have to be reflected on the TIL and I doubt that would be acceptable to them.
Posted By: 2old2care

Re: Bank will Make 1st Payment 1099 Help - 12/06/12 01:58 PM

We are checking with the VA and waiting for a response. My hope is that they put a stop to this....I spend a lot of time working on "ideas" the LO's come up with which often make my head spin. Simply a different mind set. I am looked at as wicked with of the west. I can live with that! Thank you for taking time to respond.