One of the three major differences in the structures of a CMBS transaction and a nonagency RMBS transaction include: ________.

Question

Quizplus · Accepted Answer

The role of the buyers when the structure is being created is different between CMBS and nonagency RMBS transactions. In CMBS transactions, buyers are typically involved in the structuring process from the beginning, while in nonagency RMBS transactions, the loans are typically purchased first and then packaged into a securitization. Option A describes a difference between residential mortgages and commercial mortgages, not between CMBS and nonagency RMBS transactions, and option C is a similarity between the two types of transactions. Option D is incorrect as only option B is the correct answer.

One of the Three Major Differences in the Structures of a CMBS