221.03
| 221.03A | |
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The Internal Revenue Service requires that information returns be filed when Fannie Mae (or a third party) acquires an interest in a PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). in full or partial satisfaction of the Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. or when Fannie Mae or the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. has reason to know that a PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). has been abandoned. The ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must file these notices on Fannie Mae's behalf, using IRS Form 1099-A (Acquisition or Abandonment of Secured Property), for all applicable Mortgage LoansMortgage LoansMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. (including Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. participations if Fannie Mae's percentage ownership of such Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. is 50% or greater).
The ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must satisfy the reporting requirements for the “owner of record” (instead of on Fannie Mae's behalf) when the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. purchased a delinquent Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. from Fannie Mae before the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). was acquired by the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. in full or partial satisfaction of the Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. .
For purposes of filing these reports:
- Fannie Mae (or the “owner of record”) acquires an interest in the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). when any redemption period that follows a foreclosure sale ends without redemption rights being exercised (or when Fannie Mae accepts a deed-in-lieu of foreclosure);
- A third party acquires an interest in the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). at the foreclosure sale; and
- Abandonment occurs when Fannie Mae or the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. has “reason to know” from “all facts and circumstances concerning the status of the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). ” that the BorrowerBorrowerPerson who is the obligor per the Note. intended to discard or has permanently discarded the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). from use. The ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. , however, will have an additional three months before its reporting obligation arises if the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. expects foreclosure proceedings to begin within the three months after determination that abandonment has occurred.
After an event that triggers a reporting requirement occurs, IRS Form 1099-A must be filed on or before February 28 (or March 31 if filing electronically) of the year following the calendar year in which the event occurred. The ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. also must furnish the BorrowerBorrowerPerson who is the obligor per the Note. with an information statement on or before January 31 of that year. The requirement for notifying the BorrowerBorrowerPerson who is the obligor per the Note. can be satisfied by sending Copy B of a completed IRS Form 1099-A to the Borrower'sBorrower'sPerson who is the obligor per the Note. last known address. When the form is filed on Fannie Mae's behalf, it must show Fannie Mae's name, address, and federal identification number (52-0883107), and include a legend stating that the information is being reported to the Internal Revenue Service. If it is filed by the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. on its own behalf or for the “owner of record,” the name, address, and identification number of the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. or owner of record, respectively, must be provided instead.
| 221.03B | |
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The ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. is responsible for completing the IRS Form 1099-A accurately, for filing it with the Internal Revenue Service, and for providing the information to the BorrowerBorrowerPerson who is the obligor per the Note. and to Fannie Mae by the required dates. If the Internal Revenue Service penalizes Fannie Mae because a ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. failed to file a return or filed an incorrect return or late return, Fannie Mae will require the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. to reimburse Fannie Mae for any penalty fees the Internal Revenue Service assesses (unless the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. can document that it met the filing requirements).
Information that must be reported on IRS Form 1099-A includes:
- the Borrower'sBorrower'sPerson who is the obligor per the Note. taxpayer identification number (the Social Security number if the borrower is a natural person);
- the date of acquisition of an interest in the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). or the date the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. acquired knowledge of the abandonment;
- the outstanding UPBUPBUnpaid Principal Balance of the Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. ;
- a general description of the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). ; and
- whether the BorrowerBorrowerPerson who is the obligor per the Note. is personally liable for the debt and, if personally liable, the fair market value of the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). at the time of acquisition.