Why does my mortgage keeping getting sold?

Why does my mortgage keeping getting sold?
The institution that holds your mortgage, probably a pension fund, is different than the company that is servicing your loan. Servicing involves doing the legwork of collecting payments, interacting with the borrower about questions, providing balance updates, and notifying the borrower when their mortgage is sold. When you need to make a payment or talk to someone, you should contact you loan servicer. Most people do not know who actually owns their mortgage.
Rest assured, it will not affect your credit when your loan is sold or your mortgage servicer changes.
Your mortgage is a financial instrument with a known value because it is a fixed mortgage. The value of your remaining payments can be calculated to the dollar. The company that sells your mortgage onto another company is able to get a lump sum cash payment when they sell your mortgage which can then be invested elsewhere. They have sold the loan because they think they can get a better return elsewhere in the market, or are just trying to reduce their risk exposure. On the other side of the transaction is the company purchasing your mortgage. They will entitled to receive your loan payments at fixed intervals which is a steady stream of revenue for them.
You may find that your loan servicer changes frequently. I bet you are wondering why this happens.
Interestingly enough, lower rate loans are actually more valuable when valuing mortgage servicing rights. On average, a servicer is going to make about 0.25% regardless of the mortgage rate with the rest of the money being passed onto the investor. When it comes to lower interest rate mortgages, people are much less likely to pay them off early which means a more steady income stream, thereby increasing the value of mortgage servicing.
When we talk about the actual mortgages being sold, we are talking about investors, not loan servicers. Mortgages are typically bundled together and sold. These things are not handled individually. This is one of the ways banks can make money. These bundles are almost certainly a mixed bag. There are more desirable mortgages contained in these bundles like ones with high interest rates and good customer credit scores. Then there are lower quality mortgages that involve bankruptcy or loans in default.
As your credit changes as you age, this can potentially affect how your mortgage is viewed by the institution that holds it.
Eventually, your mortgage should end up being held somewhere where it will be kept for awhile. Before it lands in one place, it could bounce around different loan servicers like Bank of America or Wells Fargo.
There is a risk that you could get a bad mortgage servicer, but this is rare and you usually only hear horror stories that are exceptionally rare. You should read all communications from your loan servicer carefully. Make sure the loan servicer pays the taxes from escrow in a timely manner so you are not delinquent on your taxes.
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