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Letter to the editor
A solution to foreclosure problem
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Forsyth County News
Apparently, a financial institution makes maximum profit via mortgage loan origination. Servicing a mortgage loan is risky (foreclosures) and less profitable.

To prevent a repitition of our banking problems, why doesn’t the government decree that  the financial institution that originates a home mortgage keep it and service it?

I think this would reduce “liar loans,” “no down payment loans” and “ packaged loans as equities.”

Today, the financial institution that originates the mortgage loan can sell it like a hot potato. The originating bank gets the profit while having no responsibility for the loan being repaid.

James E. Kauke