Service Release Premium (SRP)
A Service Release Premium is the compensation a mortgage lender receives when a closed loan is sold to an investor on the secondary market, with servicing rights transferred as part of the sale.
When a lender sells a loan, they may retain the servicing rights (continuing to collect payments) or release them. The SRP is the premium paid for the release of those servicing rights — it is a normal part of how mortgage companies generate revenue and recycle capital.
SRP is not a fee charged to the borrower. It is an industry-side financial transaction that occurs after your loan closes. It does not affect your rate, payment, or loan terms.
Why This Matters: Understanding how lenders earn revenue — including through SRP — gives you insight into the mortgage industry and helps you recognize that loan sales are a routine part of the process, not a sign that something is wrong.
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