Conforming mortgages, which of which there are three varieties, have to conform to certain guidelines. For instance the majority of VA loans are conformed to certain lending procedures. They can be sold in blocks, which is called securitizing.
Credit unions and banks can offer all three kinds of conforming loans and take the loan off the market if it is in line with the guidelines. The guidelines ensure that all things can be predicated. It’s not an investment loan if you simply hand the money. The loan cannot be sold because it doesn’t comply with their standards.
Then they can create the requirements they wish to adhere to. This is an example. They keep the loans according to their own guidelines and make it available to the house so you’re not paying the bank.
Brokers, also known as mortgage companies rarely retain any loan. Most of the loans they offer are sold. They’ll provide you with a conforming loan and then they’ll have a vendor lined up. Don’t count on that the mortgage broker will collect your payments.
Click the above link for more information.