The bank sold my loan already! - Posted by Reif

Posted by David Alexander on December 24, 1998 at 12:31:49:

They make there money from the fees charged.
Just like brokering they probably sold on down the line
to someone willing to take less on there money, maybe 7%.

David Alexander

The bank sold my loan already! - Posted by Reif

Posted by Reif on December 24, 1998 at 11:27:56:

Ii just refinanced my house at 7 3/8% (no cost to me).

Anyway, I have not even made my first payment yet, and got a letter from the bank that they have sold my loan!

Now I understand that it doesn’t really effect me as the borrower, but my question is, what is the benefit for a bank to make a loan if they don’t even get any payments on it before they sell it?

Seems kind of silly to me. What could be some of the advantages from their point of view?



Re: The bank sold the loan…even faster! - Posted by Alexander (Fl)

Posted by Alexander (Fl) on December 25, 1998 at 18:41:31:

I sold a condominium Monday and the mortgage broker for the buyer was filling out an Assignment of Loan -to a bank in Ohio-I’m in Florida- form for the loan he had secured for the buyer. He was doing this as we (the buyer and the seller) were finalizing the closing itself.

They make thousands - Posted by John Behle

Posted by John Behle on December 24, 1998 at 19:43:16:

They make a great deal of money. It used to be easy to see because it was all in the points. In today’s market, the points are low and it looks like they are not making as much.

Instead of points they make their money on the back end. Depending on the rate and terms of the loan, they receive a fee from the lender they sell the note to. Most banks and mortgage companies do not keep many of their loans in their own portfolio. They constantly broker them.

Re: The bank sold my loan already! - Posted by Rob FL

Posted by Rob FL on December 24, 1998 at 16:45:46:

They probably did make some money. Look at your HUD-1 closing form. The lender probably got points on the loan. They probably also charged you $300 or more for an appraisal that cost them $150. They charged you $200 for a survey that cost them $100. They charged you $50 for an application fee/credit check that cost them nothing. Get the drift anyway.

Merry Christmas.