Because of this, the lending power of a bank is diminished and the loss to the banks of their ability to make additional loans utilizing the same amount of reserve is extremely hampered.If mortgages perform poorly after they are sold, it could impact the lender's ability to sell their loans on the secondary market.

Omg there's a bunch of testosterone floating around on this thread.

Michael Quarles Interesting comment that you think the knowledge requirement has has diminished as compared to a couple of years ago.

Also if you find that you are buying too many of the opportunities then you need to recalculate your business' diminishing return.The following is a great letter to send out to gather feedback which the seller may not be willing to tell you in person...

For me, diminishing 'influence' is just a de-motivator as far as publishing goes.

Plus, your margin of error is diminished because you can proofread and change your offer letter before you print it out and send it off to owners.In the end result, all the seller really cares about is if you can help them. 

After time that cost percentage will diminish to 4-6%. 

I know you might hit diminishing returns at some point, but in some cases diminished returns can still be in the target range.  

As to the lender accepting payment from the new owner and how it diminishes the lender's ability to enforce the due on sale clause: I'd expect it to be easier to do with a bank with a brick and mortar where a person can make a payment by going through the drive thru.

Markets continue to tighten across the country and traditional methods of viewing and purchasing properties seem to be diminishing because realtors in certain markets are struggling to find retail deals.