Why Do Banks Sell Mortgages?

The reason you mortgage is sold to other investors has to do with capital. A lender will sell your "note" to an investor in the hope that that investor will receive the monthly servicing (your payment). Basically your loan is sold so that the seller can receive a lot of money NOW and the buyer will receive a little money each month for as long as you have that loan. It's not bad for the borrower it can be a pain at times but not bad for the borrower. It's not bad for the broker either. There is no real way to avoid having this happen, however there are some lenders who keep a higher percentage of the loans they service than others. I hope this was helpful to you.

It has no effect on you. You can prevent this with a Portfolio Loan. Although rates are a little higher. With Portfolio lenders they just stop lending when their funds are nearly depleted. All other lenders sell their loans so they continue to have the funds to lend to others.

Mortgages are sold so that the Bank/Investor can increase their liquidity. Which allows them to make another loan. Generally doesn't have any effect on the Borrower as your terms do not change. No problem for the broker.Prevent it? Not really as the holder of the note has the right to use the note as they deem best. Even a portfolio lender has the right to sell a loan if they choose.