portfolio loan

Definition

A mortgage reinstated for servicing by a bank or lender, rather than being sold to investors on the secondary market.

Use portfolio loan in a sentence

Loans held by an investment bank because they do not meet the qualifications of secondary market underwriters are called portfolio loans.

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A bank or lender may offer you a portfolio loan, which is a mortgage reinstated by that bank or lender, rather than being sold to investors on a secondary market.

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Bank of Wilbur's mortgage company typically sells the mortgages that they originate on the secondary market, but approximately 10% of the loans they originate end up as Portfolio Loans. In the course of their business they sometimes make loans that don't fit in the Secondary Market, and therefore they keep these as a Portfolio Loan.

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