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Does selling or securitizing a loan mean the bank which originally made the loan does not...

Does selling or securitizing a loan mean the bank which originally made the loan does not earn any profits from the loan

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Answer #1

No.

Securitizing a loan means the different types of loans are pooled together and then sold to another investor. The cash flow received from the individual borrowers is pooled and then paid back to the investors.

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