Where your mortgage goes after closing, and why it gets sold
From closing to investor
How it flows
A lender that kept every loan would run out of money to lend. Selling loans, often within weeks of closing, replaces that cash. Buyers include Fannie Mae and Freddie Mac, other banks and investors, and many loans end up pooled into mortgage-backed securities. This market for existing loans is called the secondary market.
Last reviewed against the primary sources listed below.
The flow
- You close with a lender.
- The lender sells the loan or delivers it into a pool.
- Investors buy securities backed by the pool.
- The lender lends the money again.
Questions about loan sales
Why does my mortgage keep getting sold?
Ownership and servicing rights are both traded; each sale frees money or changes who does the paperwork, but not your terms.