Define loans sold with recourse and without recourse

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Complete questions relating to loan securitization and loans sold with recourse/without recourse.

1. Why have FIs been very active in loan securitization issuance of pass-through securities while they have reduced their volume of loan sales? Under what circumstances would you expect loan sales to dominate loan securitization?

2. What is the difference between loans sold with recourse and without recourse from the perspective of both sellers and buyers?

Reference no: EM13831179

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