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True or False: A low Debt Service Coverage Ratio (DSCR) is the best predictor of a default during the loan term (T/F) A commercial mortgage

True or False:

  1. A low Debt Service Coverage Ratio (DSCR) is the best predictor of a default during the loan term (T/F)
  2. A commercial mortgage has lower prepayment risk compared to a residential mortgage (T/F)
  3. PE vehicles provide lower volatility and more liquidity versus public equity real estate vehicles. (T/F)
  4. In an A/B note structure, the B-note is typically included in the CMBS loan collateral pool. (T/F)
  5. In 2010 and 2011, public REITs were active net sellers of real estate while private equity funds were active buyers.
  6. There is a strong relationship between the first and second mortgage. (T/F)
  7. Preferred equity is not a loan agreement and carries a maturity that matches that of first and second mortgages. (T/F)

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