Form 1098 Mortgage doesn't match

[rtsietsema]

I have a client who purchased a new home in 2013. They have provided the 1098 from the mortgage company and the HUD settlement statement from closing. Closing date was in early February.

Two items don't match up well at all. The settlement statement has almost $1000 more in loan origination fees than the 1098. That is not quite as concerning as the Mortgage Insurance Premiums, which are almost $2700 higher on the 1098 than on the Settlement Statement.

Any ideas which may be more valid to use on schedule A? Or even an explanation as to why they are so different.

[Uncle Sam]

1098 Data Doesn't Match

Are there any items listed on the HUD-1 marked POC - Paid Outside Closing?

[Burke]

I have a client who purchased a new home in 2013. They have provided the 1098 from the mortgage company and the HUD settlement statement from closing. Closing date was in early February.

Two items don't match up well at all. The settlement statement has almost $1000 more in loan origination fees than the 1098. That is not quite as concerning as the Mortgage Insurance Premiums, which are almost $2700 higher on the 1098 than on the Settlement Statement.

Any ideas which may be more valid to use on schedule A? Or even an explanation as to why they are so different.

Sometimes there is a mortgage broker on a purchase who does the initial workup, then sells the loan to the permanent mortgagor for servicing. Perhaps the loan origination fees were disbursed to two different companies. If this is not broken down on the HUD-1, you can contact the closing agent/attorney's office for an explanation. Same for the MIP. There may be another 1098 floating around or yet to be received.

[rtsietsema]

More information

The points difference is $790. Which happens to be the difference between the Good Faith Estimate and the actual points charged by the bank. The GFE is what shows on the HUD form. Wonder if someone messed up the HUD numbers over charging the client by using the GFE instead of the bank's loan origination fee. By the way, the $790 also happens to be the appraisal fee on the HUD form. Coincidence?

Still no clue on the MIP difference. Suppose I should contact the title company for answers?

[taxmom34]

if closing was in February, did client make monthly payments on mortgage? wouldn't bank have added those months payments on the 1098?

[Burke]

The points difference is $790. Which happens to be the difference between the Good Faith Estimate and the actual points charged by the bank. The GFE is what shows on the HUD form. Wonder if someone messed up the HUD numbers over charging the client by using the GFE instead of the bank's loan origination fee. By the way, the $790 also happens to be the appraisal fee on the HUD form. Coincidence?

Still no clue on the MIP difference. Suppose I should contact the title company for answers?

I would contact the title company if they are the ones who handled the closing (or have the TP do it.) I see errors on the HUD-1 all the time. It certainly brings up a question about the appraisal. Too much of a coincidence. Average appraisal on a home in my area is $300 - $400. Was this a really expensive home? Also, sometimes several of these HUD-1's are produced for review before the final one. Make sure the one you have is the one they signed. I just had to go back to a law firm because one didn't add up. It was not the final one.

[rtsietsema]

Calling Monday

Thanks for all the ideas. One would think the mortgage company would have the right numbers since the closing was early in the year. I will be contacting the title company Monday to try and get clarification of the HUD numbers.