source:
  type: guide
  id: fnma-svc-c-4.2-01
  authority: Fannie Mae Servicing Guide C-4.2-01 — Filing IRS Forms
  description: Fannie Mae Servicing Guide C-4.2-01 — Filing IRS Forms.
  coverage_tier: operative
obligations:
- id: fnma-svc-c-4.2-01-full
  canonical_id: fnma-svc-c-4.2-01-full
  section: Fannie Mae Servicing Guide C-4.2-01 — Filing IRS Forms
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide C-4.2-01 — Filing IRS Forms
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
    snapshot_id: cf63a82bbb4adfba
    fetched_at: '2026-05-22T23:53:19Z'
    content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
    paragraph_quote: 'C-4.2-01, Filing IRS Forms (06/09/2021) Introduction This topic
      contains the following: Overview IRS Forms 1099-A and 1099-C Fannie Mae Exceptions
      to IRS Form 1099-C Reporting IRS Forms 1099-MISC and 1098 Overview This topic
      provides information related to ﬁling reports with the IRS. IRS Forms must be
      completed in accordance with the instructions of the IRS and the rules under
      the Internal Revenue Code. If the IRS penalizes Fannie Mae because a servicer
      failed to ﬁle a required form - or ﬁled an incorrect or late form - the servicer
      must reimburse Fannie Mae for any penalty fees the IRS assesses (unless it can
      document that it met the ﬁling requirements). The servicer must also follow
      all procedures in Reporting to the IRS in F-1-23, Reporting to Third Parties
      for speciﬁc instructions pertaining to this topic. IRS Forms 1099-A and 1099-C
      The IRS requires that information returns be ﬁled when Fannie Mae (or a third
      party) acquires an interest in a property in full or partial satisfaction of
      the secured debt, or when Fannie Mae has reason to know that a property has
      been abandoned or upon cancellation of the borrower''s mortgage loan debt. The
      servicer must ﬁle IRS Forms 1099-A and 1099-C in accordance with IRS requirements
      on Fannie Mae’s behalf for Published May 13, 2026 232 portfolio mortgage loans
      (including participation pool mortgage loans if Fannie Mae’s percentage ownership
      is 50% or greater) that Fannie Mae holds in its portfolio, and MBS mortgage
      loans (including mortgage participations if the securitized portion of the whole
      mortgage loan is 50% or greater) that are not serviced under the regular servicing
      option. The servicer must satisfy the reporting requirements for the “owner
      of record” (instead of on Fannie Mae’s behalf) for participation pool mortgage
      loans held in Fannie Mae’s portfolio if Fannie Mae’s ownership interest is less
      than 50%, mortgage participations in MBS pools if the securitized portion of
      the whole mortgage loan is less than 50%, and most MBS mortgage loans serviced
      under the regular servicing option. However, if the servicer did not perform
      its regular servicing obligation to purchase a delinquent MBS mortgage loan
      before the property was acquired, the servicer must ﬁle the information return
      on Fannie Mae’s behalf. For purposes of ﬁling these reports: Fannie Mae (or
      the “owner of record”) acquires an interest in the property when any redemption
      period that follows a foreclosure sale ends without redemption rights being
      exercised (or when Fannie Mae accepts a Mortgage Release); a third party — including
      the servicer of a ﬁrst lien mortgage loan secured by a property that also has
      a subordinate lien, if the servicer bids an amount that is less than that required
      to satisfy both the ﬁrst and second lien mortgage debts — acquires an interest
      in the property at the foreclosure sale; and abandonment occurs when the servicer
      has “reason to know” from ”all facts and circumstances concerning the status
      of the property” that the borrower intended to discard or has permanently discarded
      the property from use. The servicer will have an additional three months before
      its reporting obligation arises if it expects to begin foreclosure proceedings
      within the three months after it determines that abandonment has occurred. When
      ﬁling a form on Fannie Mae’s behalf, the servicer must include certain information
      on the form as set forth in F-1-23, Reporting to Third Parties. Fannie Mae Exceptions
      to IRS Form 1099-C Reporting The servicer must not ﬁle an IRS Form 1099-C for
      mortgage loans that Fannie Mae has assigned (or will assign) to vendors for
      collection. Fannie Mae will provide a list of accounts to servicers via email
      for which they must not send the IRS Form 1099-C. Notiﬁcation will take place
      no later than January 5th of the year following the calendar year in which the
      foreclosure sale occurs. IRS Forms 1099-MISC and 1098 The servicer must ﬁle
      IRS Form 1098, Mortgage Interest Statement, when applicable for each mortgage
      loan Published May 13, 2026 233 held in whole or in part by Fannie Mae using
      its own name and taxpayer identiﬁcation number. The servicer must not prepare
      or ﬁle IRS Form 1099-MISC, Miscellaneous Income, using Fannie Mae''s name or
      taxpayer identiﬁcation number. The servicer must consult with its tax advisor
      to review its reporting obligations with regard to the ﬁling of IRS Form 1099-MISC.
      Recent Related Announcements The table below provides references to recently
      issued Announcements that are related to this topic. Announcements Issue Date
      Announcement SVC-2021-03 June 09, 2021 Section C-4.3, Investor Reporting Requirements'
  judgment: false
