How Much Does Mortgage Servicing Cost?
Mortgage note servicing for Texas private lenders typically runs $20 to $50 per loan per month, plus a one-time setup fee. But the headline rate is the narrowest part of the real cost. Escrow, late-fee splits, and pass-through trustee costs are where two "cheap" servicers end up priced very differently once you add it all up.
Compare the bundle, not the headline. A $20 base with escrow billed separately costs more than a $40 rate with escrow included.
The short version
- Texas note servicing runs roughly $20 to $50 per loan per month, plus setup.
- The headline rate hides three things: escrow, late-fee handling, and trustee markups.
- Moat is $35 non-escrowed / $40 escrowed, flat, escrow included, late fees split 50/50, trustee costs at cost.
- Foreclosure is billed only if you elect it; routine servicing never includes it.
Moat's published rate card
For Texas mortgage notes:
- Setup: $150 one-time per boarded loan
- Monthly: $35 non-escrowed / $40 escrowed (escrow included)
- Late fees: split 50/50 with the lender
- Foreclosure pass-through costs: at cost, no markup, only if you elect foreclosure
- Contract: none; 30-day notice to cancel
The same card applies whether you hold 1 note or 40. Above 50 notes, we quote volume terms in writing per portfolio (see the family offices page).
Where the headline rate misleads
Three patterns turn a $20 base into $40-plus in practice:
| Pattern | What to ask |
|---|---|
| Escrow billed separately | Does the base rate include escrow, or is it a $10 to $20 add-on? Most Texas owner-occupied paper is escrowed. Moat's $40 includes it. |
| Late-fee handling | Are late fees retained by the servicer, split, or passed to you? On a book with real delinquency, this moves your annual net. Moat splits 50/50. |
| Trustee markups | Are foreclosure trustee invoices passed at cost or marked up? Moat passes them at cost. |
What changes when a loan goes delinquent
Moat boards performing loans only. If a loan it already services later falls behind, the monthly fee does not change and servicing continues as normal. Foreclosure is separate: Moat runs it only when the lender elects foreclosure services, and if a loan reaches roughly 120 days delinquent with no resolution and no instruction to foreclose, Moat offboards it rather than carry non-performing paper.
When you do elect foreclosure, the third-party costs bill at cost as they happen:
- Certified mail for the Notice of Default and Notice of Sale (about $10 to $30 per file)
- County clerk filing fee for the Notice of Sale (typically $30 to $50)
- Trustee firm fee (varies by firm and county; commercial files run higher)
- Post-sale title and recording costs
- Eviction or property-management costs if you take the property
What a 20-note portfolio actually costs
Half escrowed, half non-escrowed, all performing at boarding:
| Line item | Cost |
|---|---|
| 10 escrowed × $40/mo × 12 | $4,800 |
| 10 non-escrowed × $35/mo × 12 | $4,200 |
| $150 setup × 20 (year 1 only) | $3,000 |
| Trustee fees, if you elect foreclosure on 1 file | ~$2,500 (variable) |
| Year 1 total | ~$14,500 |
| Year 2+ recurring | ~$9,000, plus any elected foreclosure |
Comparing specific servicers
For side-by-side detail, see the comparison pages: FCI Lender Services, Madison Management, and Allied Servicing.
General information about Texas mortgage note servicing pricing. Pricing reflects the current Moat published rate card and is subject to change with notice. Competitor pricing summarized from public materials at the time of writing; check each provider for current pricing. Moat Note Servicing, LLC (NMLS 1419346) is a Texas-registered residential mortgage loan servicer (Finance Code Ch. 158).