If a Default Occurs in a Non-Recourse Commercial Mortgage-Backed Security

Multiple Choice

If a default occurs in a non-recourse commercial mortgage-backed security (CMBS) , the lender will most likely:

A) recover prepayment penalty points paid by the borrower to offset losses.
B) use only the proceeds received from the sale of the property to recover losses.
C) initiate a claim against the borrower for any shortfall resulting from the sale of the property.