When a Bank portfolios a loan it means they originate, service and hold the note until maturity or when the note is paid off. These are the banks that will typically offer really high deposit rates in order to continue to have money to lend out. This could be an interesting thing to watch as this market (real estate) begins to fall apart. I wouldn’t be caught having any deposit accounts at these little banks. They may not be around in a few years. Sure FDIC will refund your money but I would imagine that’s a lengthy process and a lot of documentation.
