Selling loans frees up
capital, enabling
banks to offer new
loans.
Changes in short-
term strategy and
budgeting lead to
mortgages being
resold
Banks profitability
drops with lower loan
amounts or servicing
individual mortgages.
Changes in interest
rates can enable
banks to profit
quickly from reselling
mortgages
Reselling mortgages
helps banks to meet
their capital reserve
obligations.