PT Ch24

PT Ch24 - Exam Name_ MULTIPLE CHOICE. Choose the one...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The largest sector of the CMBS market is constituted by ________. 1) A) securities issued by the two government - sponsored enterprises. B) securities issued by private entities. C) securities backed by Freddie Mac. D) securities backed by Ginnie Mae. 2) ________ are predetermined penalties that must be paid by the borrower if the borrower wishes to refinance. 2) A) prepayment lockout B) Prepayment penalty points C) defeasance D) None of these 3) Which of the below statements is FALSE? 3) A) In structuring a CMBS, if there is a defeasance, the credit risk of a CMBS virtually disappears because it is then backed by U.S. Treasury securities. B) With commercial mortgages, the loan can be transferred by the servicer to the special servicer when the borrower is in default, imminent default, or in violation of covenants. C) Although there are residential mortgages with prepayment penalties, they are a small fraction of the market. D) None of these 4) The structure of a CMBS transaction is the same as in a nonagency RMBS ________. 4) A) in that most structures have a sing bond class (tranch) with the same rating, and there are regulations for the distribution of interest and principal to the bond class. B) in that most structures have multiple bond classes (tranches) with different ratings, and there are rules for the distribution of interest and principal to the bond classes. C) in that most structures have multiple bond classes (tranches) with different ratings, but there are no regulations for the distribution of interest and principal to the bond classes. D) in that most structures have multiple bond classes (tranches) with the same ratings, and there
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

PT Ch24 - Exam Name_ MULTIPLE CHOICE. Choose the one...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online