When A buys a house borrowing money from the bank by signing a promissory note, A makes payments to the bank and the bank owns the notes receivable.
In the occasion when the bank sells the promissory note to an investment agencies for immediate cash flow, is the bank selling the RIGHT of future cash flow to the agency, or is the bank selling the notes receivable title to the agency? If the bank is selling the notes receivable title to the investment agency, who does A pay the payments to? Is the note receivable removed from the banks financial statement and added to the investment agency's statement since the title has been transferred? Thanks!!