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. After the sale, a mortgage servicer takes over collecting your payments.
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.
Common question
What is SRP?
Service Release Premium is compensation a lender receives when a loan is sold on the secondary market with servicing rights released. It is an industry-side transaction, not a fee you pay.
Does SRP affect my loan?
No. SRP is paid by the investor who buys your loan. It does not change your rate, payment, or terms. Loan sales are normal and do not affect your obligation.
Related Topics
Related Mortgage Terms
Curious about what happens to your loan after closing? We can explain the process — it does not change your terms.
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