If Form 1098 from bank 1 is blank, you do not have to enter it.
Your escrow balances are different and are not needed for filling out your tax return. The beginning principal balance for both your loans should be found in Box 2 of Form 1098. On that form, it is called Outstanding Mortgage Principal.
The beginning principal is needed because the IRS has set limitations on the deductibility of mortgage interest. Depending on when you got your loan, the amount of it, and your filing status, you may not get to deduct the entire amount of interest paid in 2021. In situations with more than one Form 1098, TurboTax anticipates having the finalized home mortgage interest worksheet completed on February 17, 2022.
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