Bank of New Hampshire

TiltonBB · 11-14-2023, 09:49 PM

A lot of things in the mortgage lending industry have changed in the last 15 years because of the financial crisis of 2007- 2008. Those changes and recent higher mortgage rates may have affected the profitability of mortgages for the Bank of New Hampshire.

Up until that time, most banks and mortgage brokers originated loans but sold them to major lenders in the secondary market. Major mortgage lenders like GMAC, Bank of America, Washington Mutual Etc. bought the loans from the originating company and compensated them based on the loan amount and rate and term of the loan. That is how mortgage brokers made money, selling their loans to the major lenders.

Smaller banks often held on to the shorter term adjustable rate loans because they were protected, in the event interest rates went up, the loan rate would adjust too. The banks sold most of their 30 year fixed loans to avoid the risk of changing interest rates. Mortgage brokers did not hold on to any mortgages, they were brokers, not lenders.

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11-14-2023, 09:49 PM	#14
TiltonBB Senior Member Join Date: Feb 2005 Location: Gilford, NH and Florida Posts: 3,040 Thanks: 719 Thanked 2,216 Times in 945 Posts	A lot of things in the mortgage lending industry have changed in the last 15 years because of the financial crisis of 2007- 2008. Those changes and recent higher mortgage rates may have affected the profitability of mortgages for the Bank of New Hampshire. Up until that time, most banks and mortgage brokers originated loans but sold them to major lenders in the secondary market. Major mortgage lenders like GMAC, Bank of America, Washington Mutual Etc. bought the loans from the originating company and compensated them based on the loan amount and rate and term of the loan. That is how mortgage brokers made money, selling their loans to the major lenders. Smaller banks often held on to the shorter term adjustable rate loans because they were protected, in the event interest rates went up, the loan rate would adjust too. The banks sold most of their 30 year fixed loans to avoid the risk of changing interest rates. Mortgage brokers did not hold on to any mortgages, they were brokers, not lenders.