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how does a bank make money if they sold my loan right after they originated it?

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  • Anonymous
    9 years ago
    Favorite Answer

    If you have a higher-than-market interest rate, the investor buying the loan will pay more for your loan. That is where most of the money is made and why 99.9999% of loans are sold to big investors and not retained by the originating lender.

  • 9 years ago

    points

    simple as that

    2 points, for example, on an insured bundle sold for 14 billion is good money

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