Loan Assignments Make Up More Than 90 Percent of the U.S.domestic

question 56

Multiple Choice

Loan assignments make up more than 90 percent of the U.S.domestic loan sale market because

• A)they have lower capital requirements than other types of loan sales.
• B)they are riskier than are other types of loan sales.
• C)monitoring costs are reduced since all rights are transferred upon sale.
• D)regulators prefer these transactions to loan participations.
• E)there is no secondary market in loan participations.

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