1 and 2
knohe_Complete questions 1 and 2 on page 730, relating to loan securitization and loans sold with recourse/without recourse.
1. Why have FIs been very active in loan securitization issuance of pass-through securities while they have reduced their volume of loan sales? Under what circumstances would you expect loan sales to dominate loan securitization? (LG 24-1)
2. What is the difference between loans sold with recourse and without recourse from the perspective of both sellers and buyers? (LG 24-1)
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