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Which of the following statements about "alternative" sources of funds for commercial mortgages is correct?

Which of the following statements about "alternative" sources of funds for commercial mortgages is correct?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following statements about "alternative" sources of funds for commercial mortgages is correct? O The mortgages underlying a commercial mortgage-backed security are often geographically diverse, but they rarely include loans on multiple property types. Conduit lenders are a special class of real estate lenders who only originate portfolio loans. O Servicers are often used to manage the highly structured cash flows associated with commercial mortgage-backed securities. O Bridge loans are typically longer-term loans intended to bridge the gap between the end of construction and the sale of the property. O Mezzanine loans carry below market rates because of the possibility that the lender can exercise an option to become an owner.
Transcribed Image Text:Which of the following statements about "alternative" sources of funds for commercial mortgages is correct? O The mortgages underlying a commercial mortgage-backed security are often geographically diverse, but they rarely include loans on multiple property types. Conduit lenders are a special class of real estate lenders who only originate portfolio loans. O Servicers are often used to manage the highly structured cash flows associated with commercial mortgage-backed securities. O Bridge loans are typically longer-term loans intended to bridge the gap between the end of construction and the sale of the property. O Mezzanine loans carry below market rates because of the possibility that the lender can exercise an option to become an owner.
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