3. Which of the following would generally see a reduced risk of default in residential mortgage loans? a. Buying later in the cycle b. Borrowing at a higher LTV c. Forgoing mortgage insurance d. Borrowing at a fixed-rate 4. Default risk in commercial real estate loans is more homogeneous than that seen in the residential market a. True b. False 5. Which of the following commercial sectors is generally most exposed to volatility in cash flows and therefore higher default risk? a. Hotels b. Industrial c. Infrastructure d. Offices