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Question
In a CMBS transaction, there is usually a master servicer and special servicer. The master servicer is responsible for (1) overseeing the deal, (2) verifying that all servicing agreements are being maintained, and (3) facilitating the timely payment of interest and principal.
Basically the objective of the special service is to maximize the recovery of defaulted loans.
The structure of a CMBS transaction is the same as in a nonagency RMBS ________.
A) in that most structures have a sing bond class (tranch) with the same rating, and there are regulations for the distribution of interest and principal to the bond class.
B) in that most structures have multiple bond classes (tranches) with the same ratings, and there are rules for the distribution of interest and principal to the bond classes.
C) in that most structures have multiple bond classes (tranches) with different ratings, but there are no regulations for the distribution of interest and principal to the bond classes.
D) in that most structures have multiple bond classes (tranches) with different ratings, and there are rules for the distribution of interest and principal to the bond classes.
Answer
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