221.05

Reporting via Magnetic Media

The ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must report IRS Forms 1099-C and 1099-A information on magnetic media and must do so on Fannie Mae's behalf.  Even though the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. reports to the Internal Revenue Service on magnetic media, it is still responsible for providing a hard copy of the IRS Forms 1099-C or 1099-A, as applicable, to the BorrowerBorrowerPerson who is the obligor per the Note. (Copy B) and to those states that require it (Copy C).  Copy B must be sent to the BorrowerBorrowerPerson who is the obligor per the Note. no later than January 31.

The ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must review each Borrower’sBorrower’sPerson who is the obligor per the Note. Form W-9 for validity and request a new Form W-9 if any form is invalid.  A valid W-9 will include the Borrower’sBorrower’sPerson who is the obligor per the Note. name, tax identification number, date, and signature.  In preparing Forms 1099-C or 1099-A, the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must (i) utilize the IRS TIN Matching program and perform tax identification number matching for all United States non-exempt BorrowersBorrowersPerson who is the obligor per the Note. in all circumstances, (ii) notify Fannie Mae of any BorrowerBorrowerPerson who is the obligor per the Note. that is identified as an unsuccessful TIN Match prior to preparing Form 1099, and (iii) follow up with any BorrowerBorrowerPerson who is the obligor per the Note. whose name and tax identification number combination fail the IRS TIN Match.  The ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. should also provide to Fannie Mae its TCC (Transmittal Control Code) at the beginning of each year, which will allow Fannie Mae to communicate to the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. any errors on its 1099 filings.

The ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. does not need to send Fannie Mae a copy of the magnetic media filed by the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. with the Internal Revenue Service.  However, to ensure that Fannie Mae can identify the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. and the loan number for a specific 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. should the Internal Revenue Service contact Fannie Mae for additional information or clarification, the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must:

  • insert the following header information when the IRS Form 1099-C or 1099-A, as applicable, is filed on Fannie Mae's behalf:
    • Fannie Mae on the first “Payer” line; and
    • the Fannie Mae loan number for the related 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. on the line for the “Payer's account number for Payee”; and
  • within thirty (30) days after filing with the Internal Revenue Service, send an email to Fannie Mae at [email protected], containing a summary of IRS Forms 1099-C or 1099-A, as applicable, to notify Fannie Mae what the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. reported to the Internal Revenue Service on magnetic media.