Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : BS Bar & Grill - Open 24 Hours A Day -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (6)	2/19/2001 8:50:44 AM
From: Carolyn	Read Replies (1) \| Respond to of 6901

I have heard horror stories of homeowners' taxes and insurance not being paid on time by an out-of-state mortgage holder. Then (and this does not apply to us) those who need PMI are unable to cancel it after the equity requirement is meant. I know, isolated incidences, but who wants to bother with it?

To: Ilaine who wrote (6)	2/19/2001 3:39:32 PM
From: jbIII	Read Replies (1) \| Respond to of 6901

CB, My mortgage was also with Chase until last month when they sold it to Matrix. So your loan officer was mistaken or uninformed. jb3

To: Ilaine who wrote (6)	2/19/2001 7:01:43 PM
From: Don Pueblo	Read Replies (2) \| Respond to of 6901

Technically, what the buyer is buying is the payments that you are making. Loans are sold by everyone, your loan officer was either outright lying to you or doesn't know how the game is played. My guess is the latter. In the business, a group of loans is called a "bundle". The most common practice is for an institution to sell bundled loans that are less attractive (payments have been missed, low interest rate, etc.) and buy bundled loans that are more attractive. Loans are generally bundled by some common factor, such as interest rate or borrower's evidence of prompt payment, or some other common factor. Another thing to be aware of is that many loans are "serviced" by a company (called a Servicing Company) that is not the same institution that owns them. As a general rule, you want to direct any questions to the people that are servicing your loan (which may or may not be the bank that gave you the loan), because they are the ones that are handling your money.