Tax Guy Bill- I have been a lender for over 15 years (last 5 as a loan officer and previous 10 as a processor) and I just now ran across this for the first time ever. Lenders are not tax preparers, accountants, or CPA's. Also, given that I have done numerous loans for customers that have gone thru school prior to purchasing and have never seen this, I can assume that this is not "basic". No one involved in my current transaction including the buyer, who prepared her own taxes, knew what this code meant. I was not the lender for the above referenced question, however I do take insult to your comment regarding finding a "more experienced lender". I would not expect you to know and understand all parts of my job as you should not expect as much from lending institutions.
