medium · Asset-Backed Securities asset-nuances

A CMBS loan of 15,000,000 is 60 days delinquent. The special servicer obtains a new appraisal of12,000,000.

If the disposition cost estimate is 10% and there are no outstanding advances, what is the Appraisal Reduction Amount (ARA)?

  1. $4,200,000
  2. $4,500,000
  3. $3,000,000
  4. $1,200,000

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