Why does the contractor need to complete an IRS W-9 form?
Correspondent Lending needs an IRS W-9 form for each contractor working on the project. The contractor’s information is required so that we can set-up a vendor number to issue payment for the rehabilitation work (two-party disbursement checks are made out to the borrower and contractor). For security purposes, Correspondent Lending assigns a vendor number for each contractor or borrower who will be receiving rehabilitation funds so that the tax ID or Social Security number does not need to be used. In addition, all contractors will receive an IRS 1099 form reflecting the amount paid to them for work completed. The process to set up a contractor into the system typically takes approximately five to seven business days.
