Finance
What is the secondary market for commercial real estate mortgages in Nevada?
ANevada has no secondary market for commercial mortgages
BCommercial mortgage-backed securities (CMBS) are issued by investment banks that pool and securitize commercial real estate loans — Nevada commercial properties are commonly financed through CMBS conduit lenders✓ Correct
CAll Nevada commercial mortgages are held by local banks only
DThe secondary market for commercial real estate is the same as residential
Explanation
Commercial real estate loans in Nevada are often securitized into Commercial Mortgage-Backed Securities (CMBS). CMBS conduit lenders originate loans based on property cash flow, package them with other loans, and sell them as bonds to investors.
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Key Terms to Know
Private Mortgage Insurance (PMI)
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
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