FINANCIAL MARKETS - continued

Other lenders hold loans in their own portfolios. These lenders can sometimes make loans that others will not make because even though the loan makes complete sense, it does not fit the stringent guidelines needed to resell the loan. Portfolio lenders tend to know specific markets or specific types of loans well and will stick to those niches. Where does the lenders' money come from? You. And others like you. People save up money and park it somewhere, whether in their checking account, savings account, or investments. The institution holding that money then invests it according to the type of account your money is in, such as savings, CD, and mortgage-backed securities.