26-57 A commercial bank operating under an originate-to-sell model is acting most like
A)an asset transformer.
B)an asset broker.
C)a portfolio lender.
D)an asset accumulator.
E)an investment bank.

Question

Quizplus · Accepted Answer

A commercial bank operating under an originate-to-sell model acts most like an asset broker. In this model, the bank originates loans and then sells them to investors, earning a fee in the process. The bank is acting as a middleman between borrowers and investors and does not hold the loans on its balance sheet like a portfolio lender. Therefore, it is not an asset transformer, asset accumulator, or investment bank.

26-57 a Commercial Bank Operating Under an Originate-To-Sell Model Is