Finance
What is 'commercial mortgage-backed security' (CMBS) and how does it affect Delaware commercial real estate?
AA government-backed commercial mortgage available through the SBA
BA type of mortgage-backed security secured by commercial real estate loans — pooled loans are securitized and sold to investors; CMBS lenders often have specific, inflexible loan terms✓ Correct
CA Delaware state bond program funding commercial real estate development
DA mortgage product exclusively for Delaware's commercial fishing industry
Explanation
CMBS are bonds backed by pools of commercial real estate mortgages. Lenders originate commercial loans, pool them, and sell them as securities to investors. CMBS loans often have competitive rates but restrictive terms (prepayment restrictions, defeasance requirements, cash management provisions). CMBS lenders serve the Delaware commercial market alongside banks and life insurance companies.
Related Delaware Finance Questions
- Amortization in real estate finance refers to:
- What does 'amortization' mean in the context of a mortgage loan?
- A 'balloon mortgage' in Delaware requires the borrower to:
- Which federal law requires lenders to provide a Closing Disclosure at least 3 business days before closing?
- Which federal law requires lenders to provide a Loan Estimate to mortgage applicants?
- Which type of mortgage loan is insured by the Federal Housing Administration?
- A wraparound mortgage involves:
- A seller in Delaware offers to 'carry back' a second mortgage to help the buyer close. This is known as:
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →