"The only reason the banks accept such a piddling sum is because they immediately sell the loan to a government-run corporation(or maybe skim the interest for a

"The only reason the banks accept such a piddling sum is because they immediately sell the loan to a government-run corporation(or maybe skim the interest for a year or two)." Being ignorant of the situation, I went to fact check this statement and was blown away by how true it is. I'm flabbergasted at the amount of involvement the US government has in the mortage market. More reading if anyone is interested: 1. https://www.frbatlanta.org/banking/publications/financial-update/financial_update-vol_14_no_1-fannie_mae_and_freddie_mac.aspx https://www.frbatlanta.org/banking/publications/financial-up... (Somewhat outdated but mostly good info) 2. http://blogs.reuters.com/bethany-mclean/2013/08/20/getting-government-out-of-the-mortgage-business-is-harder-than-it-looks/ http://blogs.reuters.com/bethany-mclean/2013/08/20/getting-g... 3. http://www.npr.org/2015/03/24/395119065/as-economy-rebounds-government-still-plays-role-in-mortgage-business http://www.npr.org/2015/03/24/395119065/as-economy-rebounds-... 4. http://www.npr.org/sections/money/2015/04/21/401259676/who-owns-fannie-mae-and-freddie-mac http://www.npr.org/sections/money/2015/04/21/401259676/who-o...