Which of the Below Statements Is FALSE

question 26

Multiple Choice

Which of the below statements is FALSE?

• A) Although there are residential mortgages with prepayment penalties, they are a small fraction of the market.
• B) 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.
• C) 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.
• D) None of these

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Definitions:

Direct Approach

The direct approach in communication or problem-solving involves addressing issues straightforwardly and immediately, without evasion or ambiguity.

Hostile

In a manner that is unfriendly or antagonistic.

Non-routine

Tasks or activities that do not follow a standard schedule, procedure, or method, often requiring special handling.

Disbelieve

To hold no conviction in the truth, existence, or reliability of something, often despite contrary evidence.