Except for a handful of banks that just keep a handful of…
“Except for a handful of banks that just keep a handful of their loans in portfolio, on their balance sheet, every other loan that's originated in the United States - whether from a bank, mortgage company, mortgage broker - is sold into the secondary market.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Most U.S. loans are sold to secondary markets; only a few banks retain them on their balance sheets.
In simple terms: Loans are usually sold, not kept.
Key Takeaway
Understand loan securitization.
Themes
finance
banking
securitization
Mood
analytical
informative
Type
educational
business
When to use this quote
- mortgage lending
- investment strategy
- regulatory policy
Key Concepts
economics
risk management
Questions to Reflect On
- Why do banks sell loans?
- How does this affect borrowers?
A Different Perspective
Secondary markets can increase systemic risk.