Secondary market vs portfolio loan rate newbie here:. Have read other threads, but still need some explanation.

Our mortgage lenders operate from a rate sheet. There is a base rate (our portfolio rate) and then there are a number of adjustments based on secondary market factors. This passing of fees in the form of a rate seems common amongst BOLers.

Our Dept head says we are quoting initial rate based on selling the mortgage....including any adjustments for FICO or LTV etc.

What do the rest of you do if you decide to portfolio the loan rather than sell or sell to another investor with different fees? Do you justify the same rate? (BTW - We do not have a risk-based pricing model in place.)