In a drastic departure from prior practice, when banks retained and worked out their own Problem loans, more and more have engaged in or are planning bulk sales of problem-loan portfolios to nonbanks. Such efforts have been well received in the marketplace.

A second trend, not yet wide-spread, involves the securitization of commercial loan products. Securitization has been very well accepted and, in fact, is the predominant mode of investment in the residential first-mortgage market.

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