What are the two basic types of loan sale contracts or mechanisms by which loans can be transferred between seller and buyer?

Question

Quizplus · Accepted Answer

Participations and assignments are the two most common types of loan sale contracts. Participations involve the buyer purchasing a portion of the loan from the seller, while the seller retains an ownership interest in the loan. In contrast, assignments involve the seller transferring the entire loan to the buyer. Both mechanisms allow for the transfer of loans between seller and buyer, but the extent of the transfer differs between the two.

What Are the Two Basic Types of Loan Sale Contracts