You may discover one day when you open your mail that your lender has sold your mortgage to another financial institution. It's not that your lender doesn't want your business. Most mortgages today are eventually grouped together with others in a practice called packaging, and sold on the secondary market. The bank recoups its investment, making more money abailable for local lending. The requirements of major buyers in the secondary market can exert a significant influence on the local lending practices.
The sale of your mortgage on the secondary market has no effect on the terms of your agreement. If your lender continues to accept payments and handle paperwork, you may never know your mortgage has been sold.
Mark E. Fry
President
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