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Set Up Action Items for 1098 Mortgage Interest

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Shelley Labrecque
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Form 1098 Mortgage Interest processing uses action items with specific additional actions to generate export files and transmit data to Nelco for electronic filing. This article explains how to configure the Generations action type and steps for Form 1098 processing.

Important: The Form 1098 feature must be enabled by Vantaca. Reach out to your CSM for access. 



Contents



Prerequisites

  • User roles must have the Action Item > Action Types and Action Steps > Update permissions.
  • Understanding of action item configuration. For details, see the "Action Item Configuration: Overview" article.



Review the Default 1099 Action Type

When the 1098 feature is enabled, you can copy the 1099 Export Data action type with the necessary steps and change the additional actions.

To review the default 1098 action type:

  1. Navigate to Settings > Action Types/Steps.
  2. Search for or filter for the Generations category and 1098 action type.
  3. Click the caret to expand and view the configured steps.

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The default configuration includes:

Note: The default configuration works for most management companies. You can customize the workflow to match your specific processes.

  • Step 1: Generate 1098 Export Data.
  • Step 2: Review 1098 Data - Allows users to review the generated export file.
  • Step 3: Send 1098 Data to Nelco - Transmits data to Nelco for electronic filing.
  • Additional Steps: May include closing or completion steps depending on your configuration.



Configure Additional Actions

Additional actions automate specific tasks when an action item reaches a step. Form 1098 requires the following two specific additional actions (these are the actions you will want to change if you copied the 1099 action type:

Note: See the "Action Type Rules" article for more information.

Generate 1098 Export Data

This additional action must be configured on the step where the export file is generated (typically triggered when closing mortgage records).

When mortgage records are closed from Association > 1098 Balances, this additional action:

  • Generates a CSV export file in Nelco-compatible format.
  • Attaches the file to the action item.
  • Allows users to review the data before sending to Nelco.



To configure Generate 1098 Export Data:

  1. Navigate to Settings > Action Types/Steps.
  2. Click the caret to open the 1098 action type configuration.
  3. Locate or create the step where export generation occurs (e.g., Review 1098 Data).
  4. Click Rules, and in the Additional Actions section, select Generate 1098 Export Data from the dropdown.
  5. Click Update to save.



Send 3rd Party 1098

This additional action must be configured on the step where data is transmitted to Nelco.

When the action item reaches this step, it:

  • Transmits the 1098 data to Nelco for electronic filing.
  • Creates a One Time Link to view filing status in Nelco.
  • Updates the action item note with success or error messages.
     

To configure Send 3rd Party 1098:

  1. Navigate to Settings > Action Types/Steps.
  2. Click the caret to open the 1098 action type configuration.
  3. Locate or create the step where Nelco transmission occurs (e.g., Send 1098 Data to Nelco).
  4. Click Rules, and in the Additional Actions section, select Send 3rd Party 1098 from the dropdown.
  5. Click Update to save.



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(Optional) Customize 1098 Workflow Steps

You can add additional steps to the 1098 action type to match your approval workflow or add notifications.

Best Practice: Keep the workflow simple with minimal steps. The core functionality requires only the Review and Send to Nelco steps.

To customize workflow steps:

  1. Navigate to Settings > Action Types/Steps.
  2. Search for or filter for the Generations category and 1098 action type.
  3. Click the caret to expand and view the configured steps.
  4. Add, edit, or remove steps as needed, for example:
    • Add approval steps before sending to Nelco.
    • Add notification steps to alert stakeholders.
    • Add closing steps after successful transmission.
  5. Configure each step, see the "Adding a Step to an Action Type", "Action Item Configuration Overview" and "Action Type Rules" articles:
    • Order: Set the sequence order.
    • Action Step: Enter a descriptive name for the step.
    • Additional Actions: Configure actions for this step.
    • Templates: Set up if sending notifications.
    • Other Settings: Configure as needed for your workflow.
  6. Click Update to save changes.



Test the 1098 Action Item Workflow

After configuring the action type, test the workflow with a single association before processing all associations.

To test the workflow:

  1. Navigate to Association > 1098 Balances.
  2. Select a test association with one mortgage record.
  3. Click Close and Create Export File for Submission.
  4. Navigate to the Reporting tab.
  5. Verify the action item was created and advanced to the Review step.
  6. Open the action item and review the attached export file.
  7. Click Step to advance to the Send to Nelco step.
  8. Verify the data transmits successfully and the View in Nelco link appears.
  9. Click the link to verify the data appears correctly in Nelco.



If Issues occur:

  • Verify the additional actions are configured on the correct steps.
  • Check that the Form 1098 feature is enabled.
  • Review the action item notes for error messages.
  • See the Troubleshooting section below.
     

Example Workflow Configuration

The following is a typical 1098 action item workflow:

Step 1: Generate 1098 (this step automatically advances to the review step):

  • Additional Action: Generate 1098 Export Data.
  • Purpose: Generate the export file and allow review.
  • User Action: Review attached file, then step forward.

Step 2: Send 1098 Data to Nelco:

  • Additional Action: Send 3rd Party 1098.
  • Purpose: Transmit data to Nelco.
  • User Action: System automatically transmits; user clicks View in Nelco link.

Step 3: Complete (Optional):

  • Additional Action: None.
  • Purpose: Mark the action item as complete.
  • User Action: Close or archive the action item.



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Troubleshooting



Q: Why don't I see the 1098 Export Data action type when creating a new action type?

A: The Form 1098 feature may not be enabled. Contact Vantaca Support to enable the feature for your database.
 

Q: Why doesn't the Generate 1098 Export Data additional action appear in the dropdown?

A: This additional action is only available when the Form 1098 feature is enabled. Verify the feature is enabled for your database.
 

Q: Action items are not being created when I close mortgage records. What's wrong?

A: Verify that:

  • The 1098 action type exists and is in the Generations category.
  • The Generate 1098 Export Data additional action is configured.
  • The action type is active (not disabled).
  • You have permission to create action items.



Q: The Send 3rd Party 1098 additional action fails with an error. What should I check?

A: Common causes include:

  • Missing or invalid tax identification numbers.
  • Incorrect address formatting.
  • Missing required fields in the export data.
  • Network connectivity issues.

Click the View in Nelco link to see specific error details in the Nelco portal.
 

Q: Can I use the 1098 action type for custom workflows?

A: No. The 1098 action type and its additional actions are specifically designed for Form 1098 processing and cannot be used for custom action items.


 

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