A distinguishing characteristic of a commercial mortgage-backed security (CMBS) as compared to residential mortgages is: A. Residential mortgages are non-recourse. B. CMBS are non-recourse. C. Both CMBS and residential mortgages are non-recourse.
CMBS are non-recourse. Residential mortgages are recourse, meaning that the lender can go back to the homeowner for payment if the collateral is insufficient.
