[cobra de capell]

Most banks don't retain long-term mortgages - they sell the mortgage to FANNIE/FREDDIE and often retain the mortgage servicing rights, meaning that it appears that they still own the mortgage loan but actually only service the loan, e.g. accept payments, etc. It's transparent to the customer.

It' really mortgage brokers and dealers - as I mentioned - Countrywide was the biggest one - that pushed the envelope based on a go ahead from Barney/Congress/Regulators. They made a ton of money. Banks primarily bought the packaged securities (CMO's) that the rating agencies rated AAA paper. Some of the huge bank also retained the actual mortgages that they generated directly with customers, as in your case.

It's true, mortgage brokers - basically the scum of the greater banking world came up with all kinds of 'terms' but the only way that they could have done that is through relaxed standards - they are always looking to close the deal as that's how they get paid - up front commission with normally no regular salary.

Around ten years ago it was all about maintaining credit standards throughout the mortgage lending process - that all changed when Congress steped in and relaxed FANNIE and FREDDIE standards - those entities purchase most mortgages, package those mortgages and sell packages to banks and other investors. FANNIE and FREDDIE management also made a ton of money during the last 10 years. Now, the chickens have come home to roast. We all pay with the brokers, dealers, FANNIE/FREDDIE management and politicians generally avoiding any downside relating to starting and participating in probably the most expensive scam/fiasco in history.