Question 1

What is a note servicing company?

Accepted Answer

A note servicing company manages and collects the payments you receive from your borrowers on a monthly basis. A note servicing company can collect and record each payment, including the escrow amounts, and disburse the correct amount to the appropriate parties. Additionally, a note servicing company has the resources and time to pursue late payments on a routine basis.

Question 2

Who needs a note servicing company?

Accepted Answer

Any investor who owner-finances properties. The collection process can become very time consuming and tedious. If you would like the certainty that each payment is collected, posted, and disbursed to your account on schedule, a note servicing company is for you.

Question 3

What services does Moat Note offer?

Accepted Answer

Moat Note Servicing offers detailed services for both lenders and borrowers, including: welcome packets sent directly to borrowers, monthly mortgage payment collection, online account access 24/7 for lenders and borrowers, daily payment processing, ACH direct deposit to lender accounts, accurate records of every payment made and disbursed, escrow payment tracking for each note, late payment pursuit including late notices and default notices, year-end financial accounting for the IRS (1098 and 1099 forms), and year-end escrow analysis on each property.

Question 4

What types of notes do you service?

Accepted Answer

We service seller-financed notes secured by Texas real estate: residential mortgages, commercial notes, land contracts (contracts for deed), vacant land notes, and mobile/manufactured home notes. Moat does not service wraparound or subject-to notes.

Question 5

How long has Moat Note Servicing been in business?

Accepted Answer

Moat Note Servicing has been serving private lenders and borrowers in Texas since 1997 — 29 years in business — and is based in San Antonio, Texas.

Question 6

Do you only service notes in Texas?

Accepted Answer

We service notes secured by Texas real estate. Our working knowledge of Texas property law, the property-tax calendar, and seller-finance rules is the reason lenders pick a Texas specialist over a national servicer. If your notes are in another state, tell us on our Request Your State page and we will notify you if we expand.

Question 7

Does Moat Note Servicing report to the credit bureaus?

Accepted Answer

Moat Note Servicing does not report to the credit bureaus.

Question 8

What happens if I have questions about my account?

Accepted Answer

Support is available Monday through Friday, 8:30 AM to 5:00 PM CST. You can reach us by phone at (210) 504-8878 or by email. We also offer 24/7 access to account information through our online portal for both lenders and borrowers.

Question 9

I want to sell my mortgage note, not service it. Can Moat help?

Accepted Answer

Servicing and selling are two different things. A note servicing company like Moat collects and administers the payments on a note you keep. Selling the note for a lump sum is a note-buyer transaction.

Question 10

Is Moat a note buyer?

Accepted Answer

Moat Note Servicing services notes that lenders keep; it does not purchase them. The lender of record stays the owner of the note, and Moat administers the payments on the lender's behalf.

Question 11

How do I start servicing my note with Moat Note Servicing?

Accepted Answer

Complete the online onboarding form; it lists exactly what we need, including your contact information, loan details, property information, and closing documents. Boarding typically takes 5–10 business days from form submission to active servicing. An optional $50 expedite per loan targets a 48-hour turnaround. Your lender portal login email goes out when the loan is in the system. For transfers from another servicer, RESPA (12 CFR §1024.33) requires goodbye/hello notices to the borrower, which sets the borrower-facing timing.

Question 12

What are the costs of Moat Note services?

Accepted Answer

To manage a note on a monthly basis, we charge $35 per note for non-escrowed files and $40 per note for escrowed files. There is also a one-time setup fee of $150 per note. Expedited onboarding is an optional $50 per note for a 48-hour turnaround, and a $150 research/correction fee applies only when intake rework is required. Moat retains 50% of late fees collected to cover the costs associated with pursuing late payments, including labor and correspondence. See the full scope and schedule on our services page.

Question 13

How much escrow is needed to start?

Accepted Answer

In Texas, property taxes are due in January. Closing in the month before taxes are due, or the month they are due, can be complicated. Some lenders may require 12 months of escrow if you close in these months to ensure taxes are paid. In the following month after taxes are paid, 2 months of reserves will suffice. The borrower is responsible for insurance the first year the note is managed by Moat Note Servicing, and a 2-month insurance reserve is enough.

Question 14

How do I receive my disbursements?

Accepted Answer

We disburse to the lender as borrower payments clear, typically on a daily basis. Disbursements go by ACH direct deposit to the bank account on file (most lenders prefer ACH for faster, more reliable payments) or by check if you specify that. You see the disbursement schedule on the lender portal and on the ACH advice.

Question 15

Can I access my account information online?

Accepted Answer

Yes. Every lender gets access to our secure 24/7 online lender portal. From the portal, you can view loan details, payment history, escrow balances, download monthly statements, and access year-end tax documents. The portal is accessible from any device with an internet connection.

Question 16

What tax documents do you provide?

Accepted Answer

We deliver Form 1098 and Form 1099-INT by January 31 to both borrowers and lenders. The 1098 reports mortgage interest the borrower paid; the 1099-INT reports interest income paid to the lender. Both documents are available through the lender portal and are also mailed.

Question 17

How are late payments handled?

Accepted Answer

When a borrower misses a payment, we initiate a structured follow-up process that includes late notices, phone calls, and written communication. Late fees are assessed according to the terms of the note, and Moat Note Servicing retains 50% of any late fees collected. If a borrower becomes severely delinquent, we can assist with foreclosure services if you've opted in. Our Texas foreclosure timeline page walks through the statutory steps.

Question 18

How do I make my monthly payment?

Accepted Answer

Pay through our secure online borrower portal by ACH bank transfer or debit/credit card (3% card surcharge), or mail a check to our office. Setting up automatic payments through the portal helps you avoid late fees.

Question 19

What happens if I make a late payment?

Accepted Answer

If your payment is received after the grace period specified in your loan terms, a late fee will be assessed. The grace period and late fee amount are defined in your Promissory Note. We will send you a reminder notice when your payment is past due. If you're experiencing financial difficulty, please contact us as early as possible so we can discuss your options.

Question 20

How can I view my account balance and payment history?

Accepted Answer

You can log into your borrower portal at any time to view your current balance, payment history, upcoming payment due dates, and escrow account details. If you need help accessing the portal, contact our support team at (210) 504-8878.

Question 21

Can I pay off my loan early?

Accepted Answer

In most cases, yes. Contact us to request a payoff statement, which will include your current principal balance, any accrued interest, and any applicable fees. Payoff calculations are prepared according to the terms of your Promissory Note. There may be a processing fee for payoff statement preparation.

Question 22

Are there any hidden fees?

Accepted Answer

No. The full fee schedule from our servicing agreement: $150 one-time setup per note, $35 monthly per non-escrowed note, $40 monthly per escrowed note, 50/50 late-fee split, $50 optional expedite onboarding per note for a 48-hour turnaround, $150 research/correction fee when intake rework is required, $50 payoff statement, $35 NSF (returned payment), and a 3% surcharge on card payments. Trustee, attorney, recording, postage, title, and other third-party costs pass through at cost. Foreclosure coordination, if you elect it, is a separate service quoted before any work begins.

Question 23

Is there a setup fee?

Accepted Answer

Yes. The setup fee is $150 per note. If you have multiple notes to onboard, each note has its own setup fee. For larger portfolios, contact us — we quote volume terms in writing per portfolio.

Question 24

If someone signs up with Moat Note Servicing, how long is their commitment?

Accepted Answer

No contract is required. If an issue ever comes up, we want the chance to make it right. To end servicing, give us 30 days written notice.

Question 25

What is the difference between a mortgage servicer and a sub-servicer?

Accepted Answer

A mortgage servicer holds the legal servicer-of-record relationship with the borrower and the regulator. A sub-servicer performs the operational work (payment posting, statements, escrow, default outreach) under contract to a master servicer that keeps the servicer-of-record role. For most private lenders, hiring a sub-servicer in practice means hiring a third-party servicer like Moat that operates as the servicer of record. We break down the full distinction in our servicer vs. sub-servicer guide.

Question 26

Do I need a licensed loan originator (RMLO) to write a seller-financed loan in Texas?

Accepted Answer

You generally need a licensed Residential Mortgage Loan Originator if you regularly make owner-financed loans on residences, unless a narrow exemption applies (the federal three-property limit, an immediate-family sale, or your own homestead). Most commercial and raw-land loans do not require one. Confirm your situation with counsel.

Question 27

How long does a Texas non-judicial foreclosure take?

Accepted Answer

The statutory minimum is about 41 days: a notice of sale must be filed, posted, and mailed at least 21 days before the sale, on top of the contractual cure period. In practice, most private-lender foreclosures run 60 to 120 days from the first missed payment.

Question 28

Does Texas homestead law stop me from foreclosing a seller-financed note?

Accepted Answer

Not for a purchase-money lien. Texas homestead protection (Article XVI, Section 50) blocks forced sale for most debts, but a properly recorded seller-financed deed of trust used to buy the home is an enumerated exception, so you can foreclose for non-payment.

Question 29

What changed with Texas's 2024 mortgage-servicing rules and the new 2026 bond requirement?

Accepted Answer

The Texas Department of Savings and Mortgage Lending reorganized its mortgage rules effective November 23, 2024. Separately, under 7 TAC Section 58.107, every residential mortgage loan servicer must hold an electronic surety bond filed through NMLS by January 1, 2026.

Question 30

What is Texas SB 43 and the wraparound mortgage law?

Accepted Answer

SB 43, enacted in 2021 and effective January 1, 2022, created Texas Finance Code Chapter 159. It added disclosure, licensing, and registration duties for wraparound transactions. Moat does not service wraparound mortgages.

Question 31

How do I switch mortgage servicers?

Accepted Answer

Sign a servicing agreement with the new servicer. Under RESPA (12 CFR §1024.33(b)), your prior servicer mails a goodbye notice at least 15 days before the transfer, and the new servicer mails a hello notice within 15 days after. A 60-day window protects the borrower from late fees during the switch.

Question 32

Is private mortgage servicing regulated by RESPA?

Accepted Answer

Yes. RESPA (12 USC 2605, 12 CFR Part 1024) covers most residential mortgage servicing, including servicing-transfer notices, annual escrow analysis, written error-resolution within set timelines, and limits on force-placed insurance.

Question 33

What is subservicing, and does Moat offer it?

Accepted Answer

Subservicing is when one company performs the day-to-day servicing work, including payment posting, statements, escrow, and default outreach, under contract to the party that holds the servicing rights. A private lender, fund, or capital provider keeps its own borrower and investor relationships and hands the operational servicing to a specialist. Moat runs this kind of operational servicing on Texas notes.

Question 34

Do you service contract-for-deed transactions?

Accepted Answer

Yes. Contract for deed (land contract) servicing is part of our Texas seller-finance practice. We track the payment schedule and the consumer disclosures that apply to executory contracts under Texas Property Code Section 5.061 and following.

Question 35

What documents do you need to onboard a note?

Accepted Answer

At minimum the promissory note, the recorded deed of trust, and the closing disclosure or settlement statement, plus current borrower contact information. If available, send the homeowner insurance policy and the latest property-tax statement. For older notes, we work from what you have.

Frequently Asked Questions

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