Yes, Lenders are required by IRS to report both interest received from the note and the interest paid by the borrower on the note.  These forms (1098 – Borrower) and (1099 – Lender) are required to be completed and sent to the individuals during the month of January each year.  The Note Servicing Center relieves the Lender (Seller) from this hassle by taking care of both Form 1098 and the 1099 at No Additional Charge.