We are currently a small servicer. We keep our loans in portfolio and service them in-house.

Management is currently looking into purchasing loans along with their servicing.

I have read 1026.41(e)(4)(ii) and commentary multiple times today and just want to ensure I am understanding this correctly.

"There are two elements to satisfying § 1026.41(e)(4)(ii)(A). First, a servicer, together with any affiliates, must service 5,000 or fewer mortgage loans. Second, a servicer must service only mortgage loans for which the servicer (or an affiliate) is the creditor or assignee. To be the creditor or assignee of a mortgage loan, the servicer (or an affiliate) must either currently own the mortgage loan or must have been the entity to which the mortgage loan obligation was initially payable (that is, the originator of the mortgage loan)."

As we will be purchasing these loans and will own them will we still be able to retain our small servicer designation?

Words can be important and sometimes what I think I read is not what I read LOL

If you are purchasing the loans, then you are the assignee.

Thank you. That is what I thought but wanted to confirm.