Question

1. CMBS mortgage loans are serviced by a:

a. Master service

b. None of the answers

c. Pool servicer

d. Trustee

e. Special servicer

2. mortgage loans in a CMBS issue may not come from:

a. Conducts

b all of the answers

c private portfolio loans

d multiple listing services

e government agencies

3. the following is not a major criterion used to assess standard probability of default:

a. Credit evaluation

b. Income

c. Net worth

d. All of the answers

e. Housing expenses

4. The act of making blanket designations of geographic areas that are considered to be unacceptable loan risk is called:

a. Underwriting

b. Redlining

c. Green lightning

d. None of the answers

d. Under appreciating

5. the following is not a major criterion used to assess standard probability of default;

a. Credit evaluation

b. Income

c. Net worth

d house expenses

e. All the answers

Answer 1

Answers-

Q 1)

The correct Option is a. Master service is a third-party firm that handles payments and communication with borrowers.
The Other options c,d and e are incorrect.
Option c is incorret.
Option d is incorrect as Trustee refers to a legal term and means a person who holds property, authority of trust or responsibility to perform specified action.
Option e is incorrect as Special servicer  handles default side of loan servicing.

Q 2)

The correct options are b. all of the answers.
CMBS are secured by mortgages issued by banks, mortgage companies and other originators on commercial or multi‐family income‐producing properties.
The Options a,c,d and e are all incorrect.

Q 3)

The correct Option is e. Housing expenses. It is not a major criteria to assess probability of default.
The major criterion used to assess standard probability of default are Credit evaluation, Income and Net worth

Q 4)

The correct Option is b. Redlining which is denying a loan because they live in an area which is deemed to be a poor and unacceptable financial risk.

The other Options are incorrect.
Option a is incorrect as Undeerwriting which is to sign and accept liability in an insurance policy which guarantees payment in case loss or damage occurs.
Option c is incorrect as Greenlighting is giving an approval to go ahead with the project.
Option e Under appreciating is Incorrect.

Q 5)  

The correct Option is d. Housing expenses is not a major criteria to assess probability of default.
The major criterion used to assess standard probability of default are Credit evaluation, Income and Net worth