Why Banks Sell Your Mortgage

When my wife and I bought our house in 2004, the mortgage we negotiated was sold immediately to some company we didn’t know. I knew this would happen, but it still bugged me. Here’s a great article about why mortgage banks sell the loans they put together.

Yahoo! Finance

I wish a bank would adopt the slogans below:

I seriously doubt that any depository would commit to never sell its FRMs, but it is possible that they would do it for ARMs. The marketing possibilities are certainly intriguing. Here are some un-copyrighted tag lines: “We are your lender for life, guaranteed.” “We don’t abuse customers we plan to keep.” “We believe in long-term relationships, not casual encounters.”

Wouldn’t it be great if somebody cared about their customers more than they cared about short-term profits? Besides, the greed in going after the profits really got the banks nowhere. In fact, many of them have posted significant losses, and some will fail.

billspaced

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