My loan was transferred in 2020 and I am having the same issue! This issue dramatically reduces the mortgage deduction in half. I have tried to manually adjust the number but it does no good. There's also a checkbox in the "forms" version of the Home Int Wkst that states the loan was paid off, but it still does not change the balance.
I saw the other comment to enter the two 1098 forms as one but I don't know what the IRS does or doesn't see. They will have two 1098s reported to them. Won't match what I'm reporting. Then happy audit time.
