Loan sales provide a simple alternative to the full securitization of loans through bond packages. In particular, they provide a valuable tool to an FI that wishes to manage its credit risk exposure better. Recently, by increasingly relying on securitization, banks and thrifts have begun to move away from being asset transformers to become asset brokers. Thus, over time, we can expect the traditional differences between commercial banking and investment banking to diminish as more and more loans and assets are securitized. This chapter discussed the increasing role of loan sales in addition to the legal and regulatory factors that are likely to affect the future growth of this market. The chapter also discussed three major forms of securitization—pass-through securities, collateralized mortgage obligations (CMOs), and mortgage-backed bonds—and described recent innovations in the securitization of other FI assets.