Herbie

I understand how mortgage brokers work. Companies like Quicken, Etc. They are Brokers. They do not hold the "Paper". They also make money on discount points if I am not mistaken. When I went through Quicken My mortgage ended up with Countrywide.
I didn't understand that. Quicken made money off me with discount points. I later learned I could have gone directly through Countrywide and saved myself a couple grand.

Brokers make their money on volume, the more loans they write the more they make. Their Liability is reduced because they don't actually hold the "Paper".
So any deregulation that allows them to write more loans works in their favor.

A question.
We have a local bank that does not have any Branches. It really is like a mom and Pop business. I had a mortgage with them for a while.
Do they sell their "Paper" to companies like FM and FM or do they literally own the houses they mortgage?

Bill
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