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It's not that I think it's weird because I think something shady is going on. I think it's weird because where does this process add value? I argue it doesn't
by iancmceachern 4y ago
It's not that I think it's weird because I think something shady is going on. I think it's weird because where does this process add value? I argue it doesn't. In my experience, things like this, financial instruments, the people that sell them and make a living in the churn only make their money when there is a transaction. The more transactions, the more fees and etc. they can charge. They make money when money changes hands, not necessarily by making something of value.
- dymk 4y agoI've never, ever been charged a fee for having my mortgage sold to another company, and what they do with the debt after everything has been signed isn't my concern. I just find the company offering the best rate, terms, and ability to close the underwriting, and I go with them. You're basically asking, why do retail stores exist? Why don't people go shop directly from the central distribution warehouse?
- iancmceachern 4y agoThey make money somehow. All the people that are employed in that industry, tha companies, they're making money somehow, even if if you can't point to a line item on a specific transaction. Exactly. Retail stores basically don't exist (or are in a clear downward trend) for the same reasons. People realizing they don't add value and they can just buy their stuff directly. It's the same here, how does quicken loans add value? They do something the people they sell the loan to can't? Not really, it's just marketing. Quicken loans has built a marketing funnel, they get the loans, then sell them. The value they add is marketing.