What is NOT true of loan assignments?
A)All rights are transferred on sale.
B)The loan buyer holds a direct claim on the borrower.
C)Ownership rights are generally much clearer in a loan sale by assignment.
D)Contract terms are unrestrictive from the seller's perspective.

Question

Quizplus · Accepted Answer

Loan assignments typically involve the transfer of all rights from the seller to the buyer, allowing the buyer to hold a direct claim on the borrower. Ownership rights become clearer through this process. However, the statement that contract terms are unrestrictive from the seller's perspective is not true. In fact, loan assignments often come with various restrictions and conditions that both parties must adhere to, making this statement incorrect.

What Is NOT True of Loan Assignments