A bank loan sale occurs when an FI originates a loan and sells the loan with or without recourse to an outside buyer.

Name: A bank loan sale occurs when an FI originates a loan and sells the loan with or without recourse to an outside buyer.
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Bank loan sales involve an FI selling a loan to an outside buyer, with or without recourse, after originating the loan. This is a common practice in the banking industry to manage risk and generate income.

A Bank Loan Sale Occurs When an FI Originates a Loan