Question 1

What is private loan servicing?

Accepted Answer

Private loan servicing is the administration of a loan held by a private lender rather than a bank: receiving and posting each payment, administering escrow for taxes and insurance, sending borrower statements, filing IRS Form 1098 and Form 1099-INT, and running default and non-judicial foreclosure work under Tex. Property Code §51.002 on the lender's written direction. The lender stays the lender of record throughout.

Question 2

Can I move my notes to Moat from another servicer?

Accepted Answer

Yes. When you transfer from another servicer, a RESPA dual-notice goes to the borrower for the borrower-facing piece. Boarding typically takes 5 to 10 business days; a paid $50 expedite carries a firm 48-hour commitment.

Question 3

How common is private note servicing in Texas?

Accepted Answer

Texas accounts for 24.7% of all U.S. seller-financed notes, the number-one state and roughly three times Florida (NoteInvestor / Advanced Seller Data Services, 2025). Residential notes are 62% of that volume by count. Private lenders who carry that paper are the core of Moat's book.

Question 4

Do I need an RMLO if I am only buying or holding existing notes?

Accepted Answer

Buying or holding an existing note does not by itself trigger Texas RMLO licensing. RMLO licensing applies to loan origination: taking the application, presenting terms, and negotiating. If you originate new loans (including seller-financed notes you originate yourself), the RMLO analysis applies; see our Texas RMLO requirements page for the decision tree. Buying notes on the secondary market and servicing them through us does not require you to be an RMLO.

Question 5

Can I keep my existing borrower relationships?

Accepted Answer

You stay the lender of record on every loan we service. Borrowers see Moat as the servicer on their statements and notices, and they call us for routine questions. You stay in the loop on every decision that requires lender direction: default declarations, foreclosure instructions, payoff approvals. We do not sell or solicit your borrowers. The relationship is yours.

Question 6

What happens to escrow during the boarding transfer?

Accepted Answer

When you transfer from another servicer to Moat, the old servicer sends us the current escrow balance, the prior-year escrow analysis, and any unapplied funds. We reconcile against the loan documents and confirm the balance in writing. If the prior-year analysis or balance does not line up with the loan documents, we correct it during boarding, with no re-disclosure to the borrower beyond the standard RESPA transfer notice.

Question 7

How do you handle late payments?

Accepted Answer

Late fees are assessed per the note (the note itself sets the grace period and the late-fee amount). Late notices and written communications follow the loan documents. The default-and-foreclosure path under Tex. Property Code §51.002 engages only on your written direction. Performing-loan monthly fees do not increase during default work; trustee fees and certified-mail costs pass through at cost.

Question 8

What does the flat-fee structure mean in practice?

Accepted Answer

$150 one-time setup per boarded loan, $35 per month for non-escrowed loans, $40 per month for escrowed loans (P&I plus taxes/insurance/HOA), 50/50 late-fee split with the lender. Trustee, certified-mail, county-clerk filing, and title-work costs are billed at cost as they are incurred. No annual contract; 30-day notice to terminate.

Question 9

Will you talk to my CPA?

Accepted Answer

Yes. We deliver year-end portfolio reports (interest collected, principal paid, escrow disbursed, late fees collected, foreclosure activity) in a format your CPA can pull into a tax return without a translation step. If your CPA wants to talk to us about a specific loan, send the engagement letter and we will respond on your behalf.

Question 10

Do you onboard delinquent or non-performing loans?

Accepted Answer

No. Moat only onboards performing, on-time loans. Any loan you transfer to us must be current at the moment of boarding. If a loan you want to move is currently delinquent or in foreclosure, you need to either reinstate it (catch up the payments) or complete the foreclosure with your current servicer before transferring the loan to us. Once a loan is on our books and later goes delinquent, we run the full default and §51.002 foreclosure workflow under your written direction. The dividing line is the loan's status at boarding, not whether default work ever happens.

Question 11

I have a couple of wraps in my portfolio. Will you service them?

Accepted Answer

No. Moat does not service wraparound mortgages. If you hold wraps, you will need a servicer that handles that paper. Moat services first-lien deed-of-trust notes and properly executed contracts for deed only.

Question 12

I am ready to talk. What is the next step?

Accepted Answer

Two options. Schedule a consultation at /consultation; we hold daytime slots Monday through Friday, 9:00 a.m. to 4:00 p.m. CST. Or start onboarding directly through our secure portal (the Onboard a Note button anywhere on the site); the form lists what we need, so have your loan documents handy.

Setup / boarding fee (one-time, per loan)	$150
Monthly servicing, non-escrowed (per loan)	$35/mo
Monthly servicing, escrowed (per loan)	$40/mo
Late-fee split (servicer / lender)	50/50
Expedite onboarding (optional, per loan)	$50 for 48-hour turnaround
Research / correction fee (when intake rework is required)	$150
Trustee, recording, title, attorney, postage	Pass-through at cost
Foreclosure services	Quoted in consultation
Contract length	None; 30-day notice to terminate

Servicing for private investors who are done managing it themselves

Self-servicing is fine, until it is not

Everything in the flat fee

Boarding an existing portfolio

Submit the onboarding form

Boarded to the system

Borrower notice (if transferring)

Flat fee. No contract. Thirty-day notice.

Private-investor questions, answered

Move your notes to a licensed Texas servicer.