Finance
What is a 'commercial conduit loan' (CMBS loan) and how does it differ from a portfolio loan in Nevada?
AThey are identical lending products
BA conduit/CMBS loan is originated to be sold and securitized with strict underwriting standards and prepayment restrictions; a portfolio loan is held by the originating lender with more flexible terms✓ Correct
CPortfolio loans are always smaller than CMBS loans
DCMBS loans are only for residential properties
Explanation
CMBS (conduit) loans are originated to rigid underwriting standards for securitization — they offer competitive rates but restrictive terms (yield maintenance, defeasance). Portfolio loans are held by the originating bank, allowing more flexibility in underwriting, terms, and prepayment but often at higher rates.
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