A whole loan is a single loan that a lender has issued to a borrower. Whole loan lenders commonly sell their whole loans in the secondary market to buyers such as institutional portfolio managers and agencies such as Freddie Mac and Fannie Mae. One reason lenders sell whole loans is to reduce their risk. Instead of holding a loan for 15 or 30 years and hoping that the borrower will repay the money, the lender can get the principal back almost immediately by selling it to an institutional buyer.
Click to rate this post!
[Total: 0 Average: 0]