02/25/2024
Our marketing department brought up the idea of handing out $50 coupons to our customers to entice them to refer folks to get a mortgage loan with the bank. The idea is that if a customer refers someone for a mortgage loan and it closes, the customer can redeem the $50 coupon for cash. I reviewed 1026.36 but it only seems to cover MLO compensation. RESPA's 1024.14(b) seems most applicable but i'm not sure if that just pertains to the parties involved in the transaction. This would be a referral for our customer who told someone to get a mortgage with us.
Are there any regulations on a $50 referral ‘bonus/compensation’ to our customer for referring someone to one of our MLO’s to close a mortgage? It seems similar to what the big banks do with something like a $200 bonus to open an account with them.
04/12/2020
If a mortgage loan is refinanced, are we required to report points on the 1098?
12/01/2019
The IRS 1098 reporting instructions do not address the ownership of the real property subject to a loan and are we required to report for commercial
loans too? Assuming all the conditions are met for a commercial real estate loan (borrower is an individual, payer is an individual, and the interest
paid is over $600), should we really ignore the ownership of the property? We have a case in which the real property is owned by an affiliate business
entity which is an LLC.
10/13/2019
We have a married couple wanting to fill out a home loan application. They state that they do not have any copies of their tax returns. Can we use the
other documents to verify income or are the tax returns required?
03/17/2019
Should a ITIN form be in a loan file?
04/29/2018
“We have several W8BEN filings that have expired. . From our research we have learned that W-8BENs are exempt from 1099 INT reporting, does this also mean that the bank does not collect backup withholding from these customers? We are needing to know what an expired W-8BEN means to the bank…Is it a big deal?...If so what should the time frame be to get a current W-8BEN from the customer and what should the consequence be if the bank does not receive one.”
05/31/2015
Are banks required to issue 1098 tax forms to individual loan customers who do not have Social Security number?
06/02/2014
If odd days interest is financed should that interest be included with 1098 reportable interest?
06/02/2014
If odd days interest is financed should that interest be included with 1098 reportable interest?
03/31/2014
If we have a promotion where you received $100.00 for obtaining an auto loan are we required to provide a 1099?