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A comment on Wealthy mortgage borrowers face cold shoulder from lenders. Parent comment

Re:Wealthy mortgage borrowers face cold shoulder from lenders by oldsklgdfth on Friday April 24, 2020 @11:56AM (#22969391)
> In my case, 30 days after we closed on a conventional loan, the bank sent us a letter stating the loan was transferred to Fannie Mae

I don't think that happened to me, the bank kept taking my money so I assumed the owned the house that I was paying them back for.

> The old days when you would closed the loan the bank would immediately package it and shop it around

This is probably mortgages 101, but why was that the case? Is it, in general, more favorable to sell off mortgage liabilities or where there conditions that made that true?

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Re:Wealthy mortgage borrowers face cold shoulder from lenders by nitrogen on Friday April 24, 2020 @01:22PM (#22970620)
Your "servicing" and "note" on a mortgage are two different things. The servicing right is who gets to interact with you and charge you money, but the owner of the note actually gets the money in the end (minus servicing costs). Those can be transferred independently, so you may keep sending checks to one place, but the actual owner may change over time.

One reason to sell a mortgage is to get the money back. Instead of making money slowly over 30 years, you get some fraction of that as a lump sum plus your principal is returned. Some investors want the steady payout for more, others want fast turnover for less.

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Re:Wealthy mortgage borrowers face cold shoulder from lenders by redis_mlc on Friday April 24, 2020 @12:22PM (#22969764)
Conceptually, after 2008, the US government basically backstops everything financially.

There never was a return to the markets as pre-2008, meaning there never was a recovery.

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