Why banks sell mortgages? ...

The mortgage industry is complex and involves many players, front-line lender to investors who buy mortgages from home. ... .To understand how the industry works, you must first understand why sell to banks and other lenders mortgage front line. ... .RequirementsA bank cash reserve is required by law to hold a certain amount of money in cash reserves to protect depositors and investors. ... .Therefore, a bank is in a position to a fixed amount of loans from its lending books.When HaltsAs a bank approaches the cap on the total value of loans to be obtained on their books, there must be no longer the institution. ... .A visit to a bank loan of entry into new loans and mortgages sold from money.Sales LoansA bank mortgages to other banks, mortgage lenders, preventing other institutions such as Freddie Mac. Investors.How of banks selling mortgage BenefitBy a. Bank capable of lending .Next to new customers. ... .The sale of a mortgage "make room" in the form of reserves and bank loans pulse A is limit.Time or other lenders able to sell a mortgage at the end of the transaction. ... .There is no waiting time ....