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

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Loan assignments involve the transfer of all rights and responsibilities to the buyer, which reduces monitoring costs for the seller. This is why loan assignments make up more than 90 percent of the U.S. domestic loan sale market. Lower capital requirements or regulatory preferences are not the main reasons for this market dominance. Regarding riskiness, loan assignments may be riskier or less risky than other types of loan sales, depending on the specific characteristics of the loans involved.

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