General Mortgage Knowledge · 20% of the SAFE exammedium
Correct answer: The originating lender may retain the servicing rights even after selling the loan to an investor
Servicing rights and loan ownership are legally separable. When a lender sells a mortgage to an investor (like Fannie Mae), the originating lender can retain the right to service the loan — collecting payments, managing escrow accounts, and handling customer service. The lender receives a servicing fee (typically 0.25% to 0.50% of the outstanding balance annually) for performing these duties. There is no federal requirement that servicing rights must follow the loan sale, and retention of servicing is not limited to federally chartered institutions.
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