Final answer:
Securitization is the process of selling a loan to a third party who will manage its repayment. The secondary loan market is where these loans are bought and sold by banks and financial institutions.
Step-by-step explanation:
Securitization is a process in which a loan is sold to a third party who will service the loan in the future. Many banks issue loans, such as home mortgages, and charge fees for doing so. However, instead of holding onto these loans, banks often sell them to other banks or financial institutions in the secondary loan market. The third-party who buys the loan becomes responsible for collecting the loan payments from the borrower.