Why does the lender need the IRS Form W-9?

The lender requires the IRS Form W-9 to obtain the borrower's taxpayer identification number (TIN) and certification of their tax status. This information helps the lender report any interest payments made to the borrower to the IRS, ensuring compliance with tax regulations. Additionally, the W-9 provides assurance that the borrower is not subject to backup withholding, which could affect the lender's reporting responsibilities.