Loan assignments are common in loan syndications, which involve multiple lenders, and allow lenders to sell and transfer their portion of a loan to another lender without having to seek approval from the borrower. This helps to spread the risk among multiple lenders and increase liquidity in the market.

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Loan Assignments

Question 76

Multiple Choice

Loan assignments

A) are common in loan syndications.
B) do not have buyer restrictions.
C) comprise less than 30 percent of the U.S.loan sales market.
D) involve extremely high monitoring costs.
E) expose the buyer to a double risk and involve double monitoring costs.

Correct Answer: