How Banks Get Rich Off Your Mortgage

Updated
How Banks Get Rich Off Your Mortgage

In this segment of The Motley Fool's everything-financials show, Where the Money Is, banking analysts Matt Koppenheffer and David Hanson discuss how banks generate revenue when issuing residential mortgages as well as after the fact.

Matt and David break down the revenue stream into two basic parts, gains on sales of mortgages and servicing fees, and explain to investors how to read these results.

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The article How Banks Get Rich Off Your Mortgage originally appeared on Fool.com.

David Hanson owns shares of JPMorgan Chase. Matt Koppenheffer owns shares of Bank of America and JPMorgan Chase. The Motley Fool recommends Bank of America and Wells Fargo. The Motley Fool owns shares of Bank of America, JPMorgan Chase, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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