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Posted by Nan, EA in LA on February 13, 2007, 2:08 am
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Client refinanced his home last year and I was amortizing
his loan fee over the 30 years of the new mortgage. This
year he told me his bank, A, had sold his loan to bank B.
If he had refinanced on his own, I could take the balance
of the loan fee this year. But what happens to it when the
bank sells the loan? It is obviously paid off by Bank B but
not by the client.
Nan, EA in LA
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Posted by DORFMONT@aol.com (Linda Dorfmo on February 13, 2007, 6:00 pm
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> Client refinanced his home last year and I was amortizing
> his loan fee over the 30 years of the new mortgage. =A0This
> year he told me his bank, A, had sold his loan to bank B.
> If he had refinanced on =A0his own, I could take the balance
> of the loan fee this year. =A0But what happens to it when the
> bank sells the loan? =A0It is obviously paid off by Bank B but
> not by the client.
This happens frequently when banks merge, reshuffle, etc.
The loan has not been sold at this time. The loan was sold
to one of the government finance agencies (GNMA, FNMA) and
they parcelled it out with millions of others to various
investors. What was sold in your client's case was the loan
servicing contract for which the servicing company collects
about 1/4% of the interest rate. The payee just changed
names and addresses. The loan remains as it was. Continue to
amortize the points until the loan is completely gone.
Linda Dorfmont E.A., CFP, CSA and real estate finance student.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
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Posted by Harlan Lunsford on February 13, 2007, 11:07 pm
Please log in for more thread options Nan, EA in LA wrote:
> Client refinanced his home last year and I was amortizing
> his loan fee over the 30 years of the new mortgage. This
> year he told me his bank, A, had sold his loan to bank B.
> If he had refinanced on his own, I could take the balance
> of the loan fee this year. But what happens to it when the
> bank sells the loan? It is obviously paid off by Bank B but
> not by the client.
Aye, but the client did not pay it off, so ... continue to
march. (old army saying)
ChEAr$,
Harlan
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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