Explain the difference in what lenders can do between a MBS and CMBS.
its hard to get a prepayment penalty on an MBS, but for CM loans its standard (from a lender point of view)
CMBS loans are non-recourse, meaning that the lender can’t go after the borrowers personal assets above and beyond the collateral for the loan.
im not sure about that one… your bank cannot go after your bank account if you default on your home mortgage. it wasn’t perfected when you closed on the loan. all the bank has its that RE.
Ozzy wrote what I was looking for.
[From the text V5-207-209] CMBS have call protection and residential MBS investors face substantial prepayment risk. CMBS call protection comes in two flavors: Protection at Loan Level - includes things like prepayment penalties and contractual restrictions from prepayment. Structural Protection - Because CMBS are sequential pay, ordered by credit rating, the tranche you’re in determines your exposure to prepayment.
eriqnoodle Wrote: ------------------------------------------------------- > im not sure about that one… your bank cannot go > after your bank account if you default on your > home mortgage. it wasn’t perfected when you > closed on the loan. all the bank has its that RE. Not in most states. The bank can absolutely get a judgemnt against you.
True that.
JoeyDVivre Wrote: ------------------------------------------------------- > eriqnoodle Wrote: > -------------------------------------------------- > ----- > > im not sure about that one… your bank cannot > go > > after your bank account if you default on your > > home mortgage. it wasn’t perfected when you > > closed on the loan. all the bank has its that > RE. > > > Not in most states. The bank can absolutely get a > judgemnt against you. Absolutely, with Cali being the most notable exception.