The last mortgage I got was through a local bank in Illinois, that was more than 20 years ago. Immediately after I got it, the bank sold(?) it to a bank in Iowa. I was not a credit risk in any way and paid of the 15 year note in about 10 years.
I’ve never understood why that took place. Who made money off that deal and how? The interest rate didn’t change, my payments stayed the same, I just paid to a different company.
“Immediately after I got it, the bank sold(?) it to a bank in Iowa.”
That is the norm, not the exception and that is how mortgage companies and banks operate: They sell their loans to investors. Usually overnight, BTW.