Bain Can you assist

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Hi Bain can you assist

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Sharon Good Day Professor and class, 1. Why does a mortgage lender sometimes sell a mortgage? How is this beneficial? How is it bad? Explain your viewpoint. Mortgage lenders sometimes sell a mortgage because they do not have a long term funding. In addition, it is due to risk. It is beneficial because they may retain the servicing under contract with the buyer, creates liquidity for the market and provides lower mortgage rates. When borrowers retain these services, they will continue to deal with the firm that loaned them the money. It is bad when the market takes a turn for the worst. (N.D., 2009). 2. Search the internet to find articles about mortgages about reverse mortgages. What is a reverse mortgage? Is a reverse mortgage good or bad ? Why? A reverse mortgage loan is offered to homeowners who are senior citizens 62 years and older to help by taking their equity and turning it into cash. The lender makes payment to the borrower rather than the borrower making payments to the lender. I believe it is a good thing so long as you remain in your home and pay all property taxes and insurance. It cuts out the monthly payments. This is beneficial to senior citizens who are struggling due to the economy. References N.D. (2009 June). Why do most lenders sell their mortgages? The Mortgage Professor. Retrieved from http://www.mtprofessor.com N.D. (2014). What is a reverse mortgage? The National Reverse Mortgage Lenders Association. Retrieved from http://www.reversemortgage.org/About.aspx Sharon
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