The key feature of a loan assignment is that all rights are:
A)negotiated at the time of sale, meaning the loan buyer can opt to hold a direct claim on the borrower
B)are transferred on sale, meaning the loan buyer now holds a direct claim on the borrower
C)are not transferred on sale and can be sold later
D)None of the listed options are correct.

Question

Quizplus · Accepted Answer

A loan assignment involves the transfer of all rights associated with a loan, including the right to receive payments, to the loan buyer. This means that the loan buyer now holds a direct claim on the borrower and has the right to enforce the loan agreement. All rights are transferred on sale, which is the key feature of a loan assignment.

The Key Feature of a Loan Assignment Is That All