Loan sales involve the splitting of larger loans and loan portfolios and selling them to financial institutions and other investors.

(i)Discuss ONE reason why the originators sell the loan and ONE reason why the buyers willing to involve in the loan sales. Justify your answer with the support of journal article(s).(6marks)

(ii)Loan sales will expose to the risk in the financial market. In your opinion, which type of risk will be critically involved in the loan sales? Explain and justify your answer with the support of journal article(s).(9marks)