What is the difference between a Lender and a Servicer?

Each mortgage loan has two components: the right of the investor to receive the principal and interest repayments due on the Mortgage Note; and, the right to collect the payments along with collecting the payments for taxes and insurance on the property (& mortgage). The obligation to collect and make those payments when they are due, is referred to as the Servicing Rights.

The Servicer is the entity that owns the Servicing Rights to a mortgage and is the entity to whom you make your monthly payments. As a Lender, we originate the mortgage loan, but may also choose to act as the Servicer. Usually, we sell the Mortgage Rights to another Investor and Servicing Rights to a third party. You may have heard of the Federal National Mortgage Association ("Fannie Mae") or the Federal Home Loan Mortgage Corporation ("Freddie Mac"). These entities are quasi-government agencies that are the largest buyers of mortgage loans in the US. However, neither of the agencies service loans. Therefore, it is possible we could sell the Mortgage Rights to Fannie Mae and retain the Servicing Rights ourselves.

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Corporate Headquarters

  • 713-334-1100
  • 9700 Richmond Avenue, Suite 320
  • Houston, TX 77042
  • NMLS #2297
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