Which of the Below Statements Is FALSE

Which of the below statements is FALSE?

A) Although there are residential mortgages with prepayment penalties, they are a small fraction of the market.
B) In structuring a CMBS, if there is a defeasance, the credit risk of a CMBS virtually disappears because it is then backed by U.S. Treasury securities.
C) With commercial mortgages, the loan can be transferred by the servicer to the special servicer when the borrower is in default, imminent default, or in violation of covenants.
D) None of these