QUESTION 17 What is a risk that a CMBS investor faces that an agency MBS investor avoids? Prepayment risk Inflation risk Interest rate risk Default risk QUESTION 18 Ann wants to buy a building. The annual NOI for the building will be $100,000. She wants to get a 30 year, fully amortizing, fixed rate mortgage at an annual rate of 5% with monthly compounding and monthly payments to buy the building. The lender has a minimum Debt Service Coverage Ratio (DSCR) of 1.20. If Ann gets a 50% LTV loan for $500,000, what is her DSCR? 4.00 1.20 3.10 There is not enough information to compute Ann's DSCR