hard · Asset-Backed Securities
A CMBS loan with a 'Yield Maintenance' provision is prepaid.
What does the lender typically receive?
- The present value of the interest that would have been earned if the loan had not prepaid.
- The right to foreclose on the property immediately.
- A flat fee of 1% of the outstanding loan balance.
- A higher interest rate on the remaining loans in the pool.
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