Date: Sept. 19, 2002
TO: All Originating and Servicing Agents
RE: Clarification of roles and responsibilities for Originating and Servicing Agents regarding 1098 reporting
Each year, VHDA sends out correspondence to our lending partners clarifying roles and responsibilities for Originating and Servicing Agents regarding 1098 reporting.
Unfortunately, we continue to have confusion due to the unusual relationship VHDA has with its lending partners. In order to provide accurate reporting to our borrowers and lessen the burden to our Lending partners, VHDA will assume full responsibility for the reporting of all discount points, origination fees, per diem interest and loan servicing interest paid throughout the 2002 year. The only exception to the preceding sentence is that Servicing Agents will continue to be responsible for reporting interest collected with monthly payments received by such Servicing Agents. This is a deviation from years past, however we anticipate it will make for a much easier process.
As in the past, it will be necessary for VHDA to receive packages on all loans closed in 2002 by January 10, 2003. To provide accurate reporting to our borrowers, packages must include a check payable to VHDA representing per diem interest paid at closing.
Should you have any questions or concerns with this policy change, it is important that you contact Michele Watson in Originations regarding Discount and Origination points and per diem interest reporting. Tom Dolce in Loan Servicing should be contacted regarding loan servicing interest reporting.
Should you experience system problems due to this change in procedure, we would appreciate your contacting VHDA as soon as possible. We thank you for your cooperation in this matter.
Very truly yours,
Michele G. Watson
Assistant Director Single-Family
Thomas A. Dolce
Managing Director of Servicing and Compliance