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As to why they'd actively ask the borrower to pay them less money? They know that if *THEY* don't chase the refi & get 75 cents on the dollar, somebody else will chase it and they'll get 0 cents on the dollar. IOW: portfolio retention.

The OP fundamentally misunderstands how banks make money on loan originations.

First, they made money the first time they originated this consumer's loan.

Then they made money on servicing this consumer's first loan.

Then they'll make monety on originating this consumer's second loan.

Then they'll make money on servicingt this consumer's second loan.

It's the INVESTOR back on Wall Street who earns less YIELD on the second loan--a completely different beast--not that Wells makes less money. Wells doesn't make less money. Wells makes more money.
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