Banks don’t plan to hold that mortgage very long and so aren’t concerned about interest rate risk. They quickly flip it to the secondary market, which is backst

Banks don’t plan to hold that mortgage very long and so aren’t concerned about interest rate risk. They quickly flip it to the secondary market, which is backstopped by Fannie Mae, who can afford to overpay. https://www.investopedia.com/articles/pf/07/secondary_mortgage.asp https://www.investopedia.com/articles/pf/07/secondary_mortga...