A short-term borrowing mechanism that is used by private lenders to borrow funds by using their loans as collateral. A lender sells a loan or other asset (such as mortgage-backed securities) to a buyer (another financial institution), with the agreement to repurchase the asset later. These are used as a means to provide financing to lenders to fund or lever loans.
The lender entered a Master Repurchase Agreement (MRA) with the bank, allowing them to temporarily sell their loan and access necessary capital to fund new projects while agreeing to repurchase the loan within a set amount of time.