Who really has my loan?

Here is what typically happens on a typical mortgage. 

 

  • You buy a home and receive a mortgage from ABC Mortgage Company or even your local bank.
  • ABC Mortgage Co. funds your loan and you move into your new home.

 

Part of your loan is then sold to a very large investor (FannieMae, FreddiMac, etc.). Only the note is sold to them the servicing, or who you make your payments to is sold to another company (WellsFargo, Countywide, etc.).  Local banks such as Syringa Bank, Mountain West Bank and Key Bank all sell their loans.  This is a critical and important function as without their ability to sell the loans they would be limited by the amount of deposits on how much they could lend.  Plus because of their local presence they have on the ground people who know the in's and out’s of out local marketplace.

Posted by DarrinJ at 11/27/2008 2:15:00 AM
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