Does the requirement that all mortgage loans be fixed-rate loans preclude a one-time adjustment of the interest rate on a mortgage loan before the CMBS is issued?
No. A loan that backs a newly issued CMBS is considered to be a fixed rate loan, notwithstanding any provision for a one-time adjustment of its interest rate, if (1) the interest rate is otherwise a fixed rate and (2) the adjustment is scheduled to occur prior to or simultaneously with the issuance of the newly issued CMBS.
Related Questions
- When does the requirement that a first-time home loan borrower of a subprime mortgage loan with a variable or adjustable interest rate receive counseling go into effect?
- Does the requirement that all mortgage loans be fixed-rate loans preclude a one-time adjustment of the interest rate on a mortgage loan before the CMBS is issued?
- What kind of benefit does interest rate hedging offer over fixed-rate loans?
