What private loan servicing means: an outside company handles the routine work on a privately held note. It posts each payment, manages escrow, sends borrower statements, and files IRS Forms 1098 and 1099-INT. Riverstone does that for notes secured by Texas property for $35 to $40 per note per month after a one-time $150 setup. See the lenders we work with and the complete fee schedule.
A handful of performing notes is easy enough to track in a spreadsheet or QuickBooks. What takes time is everything around the payment: an escrow account that comes up short, a borrower who calls three times about a late charge, a buyer for your note who wants a clean, auditable payment history. Mistakes in that record belong to the lender, not the borrower.
We do this work every day for Texas private investors. The price is flat, there is no long-term contract, and you can leave with 60 days' notice.
Schedule a ConsultationOnboard a Note
When self-servicing stops working
Servicing your own notes can be the right call when the portfolio is small and every borrower pays on time. You deposit the payment, log it, mail a year-end statement, and move on.
The risks grow quietly. Escrow is the first: a tax bill paid late, an insurance policy that lapses without anyone noticing, or a skipped annual analysis can cost far more than a year of servicing fees. Borrower communication is the second: one heated phone call can turn into a complaint to the Texas Department of Savings and Mortgage Lending or the CFPB. The sale calendar lists each month's date.
None of these problems shows up right away. They show up later, often when you try to sell the note and the buyer's diligence team asks for records you never kept.
What the monthly fee covers
- Receiving payments, including ACH
- Sending collected funds to you
- Escrow for property taxes, hazard insurance, and HOA dues
- Monthly statements to borrowers
- IRS Forms 1098 and 1099-INT to borrowers and lenders by January 31
- Late notices under the terms of the note
- A lender portal at /login with reports you can pull at any time
- A secure online payment portal for borrowers
- Transfer notices to borrowers when a portfolio moves to us
Default and foreclosure work is not part of the monthly fee. Default and foreclosure support is available as a separate service on request. Ask us for a quote.
Moving your notes to us
Coming over from self-servicing is the simple case. If another servicer has the loans now, the borrower also receives the federal transfer notice.
Send the onboarding form
Upload your loan documents through the onboarding form. It lists everything we need, and a complete package is what keeps boarding fast.
We load the loan
Expect 5 to 10 business days from submission to active servicing, or about 48 hours with the optional $50 per loan expedite. Your lender portal login arrives once the loan is in the system.
The borrower hears from us
For a loan transferring from another servicer, the borrower receives the RESPA transfer notice. For a loan you were servicing yourself, the borrower receives a welcome letter with new payment instructions.
The complete transfer process, step by step, is on Changing servicers in Texas.
The fee schedule
| Setup, per loan (one-time) | $150 |
| Monthly servicing, no escrow | $35 per loan |
| Monthly servicing, with escrow | $40 per loan |
| Late fees collected | Split 50/50 between servicer and lender |
| Expedited boarding (optional) | $50 per loan, 48-hour turnaround |
| Research or correction when an intake file needs rework | $150 |
| Default and foreclosure support | Separate service, quoted on request |
| Contract term | None; 60 days' notice to end |
| Transfer-out fee, per loan | $75, or $100 with less than 60 days' notice |
One note or fifty, the per-loan rate is the same. Institutional books can ask about portfolio terms in a consultation.
Questions private investors ask
What does a private loan servicer actually do?
It administers a loan owned by a private lender instead of a bank. That means taking in and posting each payment, managing escrow for taxes and insurance, sending statements, and filing the year-end 1098 and 1099-INT. You stay the lender of record the whole time.
Can I move notes to Riverstone from my current servicer?
Yes. The borrower gets the federal transfer notice, and we board the loan in 5 to 10 business days after a complete submission. The optional $50 expedite carries a firm 48-hour turnaround.
Do I need an RMLO license to buy or hold existing notes?
Buying or holding a note that already exists does not, on its own, require a Texas RMLO license. Licensing attaches to origination: taking applications, offering terms, and negotiating new loans. If you create new notes yourself, including seller-financed sales, the RMLO rules may apply. Buying notes on the secondary market and having us service them does not make you an originator.
Do I keep the relationship with my borrowers?
Yes. You remain the lender of record on every loan. Borrowers see Riverstone as the servicer on statements and call us with routine questions. Decisions that belong to the lender, such as payoff approvals or changes to loan terms, come to you. We never sell your borrower list or market to your borrowers.
What happens to the escrow balance during a transfer?
Your old servicer sends us the current escrow balance, the most recent escrow analysis, and any unapplied funds. We check those figures against the loan documents and confirm the balance to you in writing. If something does not match, we fix it during boarding. The borrower does not receive any new disclosure beyond the standard transfer notice.
What happens when a borrower pays late?
The note controls: it sets the grace period and the late charge, and our late notices follow it. Late fees we collect are split 50/50 with you. Default and foreclosure support is available as a separate service on request. Ask us for a quote.
What does the flat fee look like over a year?
You pay $150 once when the loan boards, then $35 a month for a loan without escrow or $40 a month for a loan with escrow for taxes, insurance, or HOA dues. Late fees are split 50/50. There is no annual contract; ending service takes 60 days' notice and a $75 per loan transfer-out fee, or $100 with shorter notice.
Will you work with my CPA?
Yes. Year-end portfolio reports show interest collected, principal paid, escrow disbursed, and late fees collected in a layout a CPA can use directly. If your CPA has a question about a specific loan, send us your authorization and we will answer on your behalf.
Will you board a loan that is behind on payments?
No. A loan has to be current on the day it boards with us. If a note you want to move is delinquent or in foreclosure, reinstate it or resolve it with your current servicer first, then transfer the performing loan.
Will you take a wraparound note?
No. Riverstone does not service wraparound mortgages. We service first-lien deed-of-trust notes. If your portfolio includes wraps, you will need a servicer that handles them.
What's the first step to board my notes?
Book a consultation; we take calls Monday through Friday, 9:00 a.m. to 4:00 p.m. Central. Or go straight to the onboarding form, which tells you which loan documents to have ready.
This page is general information, not legal, financial, or tax advice. Talk to a licensed professional about your specific situation. Riverstone Note Servicing, LLC is a licensed Texas mortgage servicer based at 1602 N Interstate 35, San Antonio, TX 78208. We service only mortgage notes secured by Texas real estate. Prices shown are our current published rates and may change with notice.
