what's the difference between a whole loan sale and securitization?

Answer 1

When you sell a loan, you sell it to one person or institution in its entirety. If that person or institution wants to sell it again, they would have to find a buyer and negotiate the price.

When you securitize a loan (or portflio of loans), you sell it to many investors in small pieces (bonds). Since bonds are publicly traded, it is easy for investors to buy more is they want more or sell some or all of their position.

Answer 2

Whole Loan Sales