1099-C statements have been generated and mailed to approximately 200 customers. These statements generate when cancellation of debt occurred during the 2021 calendar year.
1099-C Explanation
With interim servicing, 1099-C statements are generated and mailed to customers who owed a monthly payment(s) to Fairway before their loan transferred to the new servicer but never remitted the payment(s) due to Fairway.
- At the end of the 2021 calendar year, Fairway’s Accounting Department performs a write-off of the loss in these instances, resulting in the cancellation of debt
- A 1099-C is issued when the write-off amount of the interest portion of the referenced payment is greater than $600.00
1099-C Call Handling
If customers call with questions about a 1099-C received from Fairway, provide an explanation based on the information above.
If customers have additional questions or require further assistance:
- Connect the call to Sandi Whitcomb – Senior Default Analyst
- Phone: (469) 228-4176
- Prior to transferring the call, advise the caller to leave a voicemail if Sandi is unavailable
- Advise the caller they will receive a return call within one business day
Sample 1099-C Form
