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
Cumming
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
Cumming