The private lender is most likely just making a commission on doing the paperwork to create the mortgage, but they're selling it to the government a la Freddie

The private lender is most likely just making a commission on doing the paperwork to create the mortgage, but they're selling it to the government a la Freddie Mac and Fannie Mae. It's what a "conforming loan" is. https://www.rocketmortgage.com/learn/conforming-loan https://www.rocketmortgage.com/learn/conforming-loan