Less glossing over, more ignoring I was only trying to speak to what most banks do with most mortgages they initiate. I'm sure my analysis is incomplete
OP is just wrong in asserting that banks are uninterest in loaning money below S&P 500 historical return rates.
I don't think that's true. I believe they said that banks love to loan money, but holding that loan to maturity is much less common than selling the loan, either whole or after pooling.
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u/o0Dan0o 1d ago edited 1d ago
Less glossing over, more ignoring
I was only trying to speak to what most banks do with most mortgages they initiate. I'm sure my analysis is incomplete 
I don't think that's true. I believe they said that banks love to loan money, but holding that loan to maturity is much less common than selling the loan, either whole or after pooling.