Switching mortgage servicers in Texas
Move your notes to Moat. We handle the RESPA 12 CFR §1024.33 paperwork and the dual notice to your borrowers.
QUICK ANSWER
You can move your notes from one servicer to another under the federal RESPA transfer rule (12 CFR §1024.33). The borrower gets one combined dual notice (transferor mails at least 15 days before the effective date; transferee can join the same notice). Misdirected payments are forwarded without penalty for 60 days. No transfer fee from us; the same $150 setup applies as any new boarding.
Why private lenders switch servicers
The reason on the cover letter is almost never the real reason. Out of every five switching conversations we have, four are about response time. The fifth is about a specific Texas issue the prior servicer mishandled: a Notice of Sale that went out late, a homestead exception nobody recognized, an escrow analysis that double-counted taxes, a borrower who was told the wrong thing about loss mitigation. The pricing conversation comes last.
We service Texas notes only, and that is the point. The Texas Department of Savings and Mortgage Lending rules, the Property Code §51.002 timeline, Tex. Const. Art. XVI §50 homestead exceptions, and the SB 43 (2021) wrap-mortgage rules are the legal landscape we work in every day. We are not learning Texas through your file.
The RESPA 60-day rule, plainly
The federal Real Estate Settlement Procedures Act (12 USC §2605, implemented by Regulation X at 12 CFR §1024.33) sets the framework for a servicing transfer. Three rules matter most:
- 15-day notice from the old servicer, before the effective date.
- 15-day notice from the new servicer, on or after the effective date. A combined notice signed by both is permitted and is the usual practice.
- 60-day misdirected-payment grace period. If a borrower sends a payment to the old servicer within 60 days after the effective date, it cannot be treated as late and cannot trigger negative credit reporting.
The rule covers federally related mortgage loans being serviced by an entity covered by RESPA. Most private notes secured by Texas residential real estate are covered. Commercial loans and certain other categories sit outside RESPA; the practical transfer mechanics still look similar.
THE PROCESS
What a transfer looks like, step by step
- 1
Notify your current servicer
You give your current servicer written notice that you are terminating the servicing engagement and request the loan file. Your existing servicing agreement will specify the notice period (commonly 30 days). Most servicers can accommodate a shorter window if asked, but the agreement controls.
- 2
Submit the onboarding form to Moat
Submit your loan documents through the onboarding form. The form lists what we need; having it ready upfront keeps boarding quick.
- 3
Boarded to the servicing system
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.
- 4
RESPA §1024.33 dual notice to the borrower
RESPA 12 CFR §1024.33 requires the transferor servicer to give the borrower notice at least 15 days before the effective transfer date, and the transferee servicer to give notice not more than 15 days after the effective date. A single combined notice signed by both servicers is permitted and is the usual practice. The notice identifies both servicers, the effective date, where to send payments, and the 60-day grace period for misdirected payments.
- 5
Effective date: Transfer of servicing
On the effective date, Moat takes over payment posting, escrow administration, borrower communication, and statement issuance. The old servicer transfers any escrow balances, unapplied funds, and the complete loan file. We reconcile against your records and confirm the takeover in writing.
- 6
Post-transfer grace period
For 60 days after the effective date, any payment a borrower sends to the old servicer must be forwarded to the new servicer without late fee or adverse credit consequence (12 CFR §1024.33(c)(1)). Both servicers monitor for misdirected payments. After day 60, the new servicer is the sole point of contact.
WHAT HELPS A TRANSFER GO SMOOTHLY
What a clean file looks like
The onboarding form lists exactly what we need; this is what a complete file typically includes, so you know what to gather. The cleaner the package, the faster the transfer closes — and most of these already exist in your prior servicer’s file. We can help you write the file-request letter if you want.
Original note or true copy
Recorded deed of trust
Complete payment history
Current escrow ledger (if escrowed)
Current homeowners insurance policy and tax bills
Borrower’s current contact information
Any default notices already sent (NOD, NOS)
Pending loss-mitigation files
Outstanding 1098 / 1099-INT records for the year
Servicing-transfer authorization letter
COMPARISONS
How Moat compares to your current servicer
Side-by-side factual comparisons for the servicers we hear about most often from incoming Texas lenders. No marketing claims; just what we do, what they do, and where the differences sit.
FCI Lender Services alternative
How Moat compares to FCI on Texas-specific knowledge, fee structure, response time, and the file types we will board.
Madison Management alternative
Headline pricing ($20 base) vs bundled escrow ($35-$40), Reno NV vs Texas focus, and SB 43 wrap posture compared side by side.
Allied Servicing Corporation alternative
Licensing posture, public state regulatory record (PA + MI cease-and-desist orders), and Texas-specific focus.
August REI alternative
Two Texas-based servicers compared: tenure since 1997, published fee schedule vs quote-on-request, bundled escrow, and note scope.
Note Servicing Center alternative
California base vs Texas-only, flat monthly ($35-$40) vs per-payment ($25/payment), bundled escrow, and wrap/NPL scope compared.
Evergreen Note Servicing alternative
27-state coverage vs Texas-only focus, published fee schedule vs contact-the-office pricing, and §51.002 default depth.
Comparison pages cite only publicly available information (regulator filings, BBB pages, the providers’ own websites). If a fact is out of date, email us at customersupport@moatnoteservicing.com and we will correct it.
FREQUENTLY ASKED
Switching servicers, answered
This page describes the RESPA transfer process at 12 USC §2605 and 12 CFR §1024.33 as it applies to private mortgage notes secured by Texas real estate. It is not legal advice. Specific deadlines and requirements depend on your existing servicing agreement and the loan type. Moat Note Servicing, LLC (NMLS 1419346) is a Texas-licensed mortgage servicer based in San Antonio, Texas.
Ready to make the switch?
Send your loan documents and your current servicer's name, and we'll review the file and quote the boarding.