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Originally Posted by Tactitus
In the US, buyers of mortgages are required to honor the terms of the original contract (they are only permitted to adjust certain fees associated with servicing the loan). That said, some mortgages contain on-demand clauses that permit the mortgage holder to call the loan under certain conditions (most commonly, whenever the property is sold).
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Absolutely. Usually upon approval of funding, the initial lenders are almost always direct lenders, and will fund the mortgage upon agreement, acceptance of conditions and approval.
Right after funding, the initial direct lenders will then sell or bid to other lenders, the loan and the original contract. Whoever takes the bid (most of the time, the first lender to be contacted by the direct lender takes the bid), will then buy the original mortgage agreement and will take over the long-term commitment of the mortgage with the homeowner.