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Rate Index - Identifies the index corresponding to the yield of a published interest rate, such as the Prime Rate, LIBOR, Treasury Bill / Treasury Note rate, 11th District COFI, etc. Lenders use indexes to establish interest rates charged on mortgages or to compare investment returns. A final note rate typically includes an Index Yield plus a Spread.

Real Estate Investment Trust - A business entity formed to invest in real estate, mortgages and/or securities backed by real estate. REITs are required to pass through 95% of taxable income to their investors and are not taxed at the corporate level. The three major types of REITs are equity, mortgage and hybrid, with equity being the dominant type; referred to as REIT.

Real Estate Mortgage Investment Conduit - A vehicle, created by the Tax Reform Act of 1986, which permits the sale of interests in mortgage loans in the secondary market. It is a pass-through entity that can hold loans secured by real property and issue multiple classes or investors without the regulatory, accounting and economic obstacles inherent with other forms of mortgage-backed securities; referred to as REMIC.

Real Estate Owned - The term used to describe real property collateral to which title has been taken back by the mortgagee (trust by way of beneficial ownership) through foreclosure or deed in lieu of foreclosure.

Real Estate Taxes - An expense line item that includes all fees relating to real property (real estate) taxes associated with the property.

Recourse - A type of mortgage loan in which the lender's remedies in the event of borrower default are unlimited, extending beyond the property to the borrower's personal assets.

Recourse Options - Options that determine the type of mortgage loan in which the lender's remedies in the event of borrower default are either limited or unlimited, and may extend beyond the property to the borrower's personal assets. Options include Recourse, Non-Recourse, or Partial Recourse. Recourse - A type of mortgage loan in which the lender's remedies in the event of borrower default are unlimited, extending beyond the property to the borrower's personal assets. Non

Recourse - A mortgage in which the lender will not pursue personal liability against the borrower. The lender's security is the real estate being financed. Usually subject to standard carveouts including fraud and misrepresentation. Partial Recourse - a combination of recourse and non-recourse conditions.

Recreational Area - An area suited for games, dancing, or other kinds of recreation.

Recreational Property - A property designed for a very specialized use. Property types include sports arenas, country clubs, marinas, etc.

Refinance - A Loan Purpose; to provide new financing or new financing for, as by discharging a mortgage with the proceeds from a new mortgage obtained at a lower interest rate.

Regional Shopping Center - Enclosed shopping center of 400,000 - 800,000 square feet. Tenants: At least two anchor stores.

Reimbursement - (Reimbursement Structure) A payment or accounting structure in which the cost for utilities and/or services incurred by the tenant is paid to the provider by the lessor and subsequently reimbursed, usually on a prorata basis, by the tenant. Typically, the associated item is allocated between the lessor and lessee based on the lessee's proportionate share of net rental area (e.g. utilities, real property taxes, insurance).

Reimbursement Basis - Identifies the structure by which the tenant reimburses the landlord for expenses relating to the leased area; options include NNN, Gross, or Modified Gross.

Renewal Probability - The probability that the tenant will renew or extend the lease term for one or more prescribed periods, expressed as a percentage from 0% to 100%. For example, a 65% renewal probability represents that the there is a 65% chance that the tenant will renew the lease; resulting in a 35% rollover probability.

Rent Roll Start Date - Identifies the date from which Tenant Improvement and Leasing Commissions are calculated. By default, this date is the date on which the loan file was created.

Rent Step-Up - A lease agreement in which the rent increases every period for a fixed amount of time or for the life of the lease.

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Repairs & Maintenance - A line item expense that represents all expenses for the general repairs and maintenance of the building including common areas and general upkeep. Includes both in-house payroll and contracted services. Repairs and maintenance expense includes payroll, elevator, HVAC, electrical and plumbing, structural/roof, trash removal, and other repairs and maintenance expense items. Repairs & Maintenance can be provided in total or broken down by the following subcategories: 1. Payroll - The expense of all employees involved in on-going property repairs and maintenance, but whose salaries/wages are not included in other specific expense categories. 2. Elevator - The expense of the contract and any additional expenses for elevator repairs and maintenance. This expense item may also include escalator repairs and maintenance. 3. HVAC – The expense of the contract and any additional expenses for heating, ventilation and air-conditioning systems. 4. Electrical & Plumbing - The expense of all repairs and maintenance associated with the property’s electrical and plumbing systems. 5. Structural/Roof - The expense of all repairs and maintenance associated with the property’s building structure and roof. 6. Trash Removal - The expense of garbage removal services. 7. Other Repairs & Maintenance - The cost of any other repairs and maintenance items not specifically included in other expense categories.

Replacement Reserves - A guideline that suggests the minimum required replacement reserves (or capital expenditures) for the proposed loan. This guideline is based on numerous factors including property type, loan amount, proposed loan to value and debt service coverage, and numerous physical, financial and tenancy factors identified in the proposed loan. Replacement reserves are various account(s) maintained (typically by the Lender) to provide funds for anticipated expenditures required to maintain a building. A reserve account usually is required by a lender in the form of an escrow to pay upcoming taxes and insurance costs. A replacement reserve is usually an amount set aside from net operating income to pay for the eventual wearing out of short–lived assets; monthly deposits that a lender may require a borrower to a reserve in an account, along with principal and interest payments for future capital improvements of major building systems (e.g. HVAC, parking lot, carpets, roof, etc.). Replacement reserves are typically calculated on a per unit basis (e.g. multifamily - per unit; office, retail, industrial - per square foot; etc.).

Reserve Funds - A portion of the bond proceeds that are retained to cover losses on the mortgage pool. A form of credit enhancement. Also called reserve accounts. Residual refers to any cash flow remaining after the liquidation (full pay off) of all classes of securities in. a CMBS. Multiple-Asset, Multiple Class CMBS frequently have a residual.

Residual Interest - Every REMIC must have one and only one class of residual interests, although there may be multiple owners of residual interests. All distributions of residual interests must be prorated; however, a residual interest does not have to entitle the holder to any fixed or minimum, distributions in order to qualify as such. Residual interests may accrue income or cash flow in several ways including 1) the rate(s) differential between the underlying mortgages and the REMIC regular interests, 2) income or cash flow resulting from over collateralization, 3) buy down reserves, sinking funds or prepaid insurance, and 4) income from qualified reserve funds or cash flow investments in excess of what is required to service regular interests.

Resort Area - A place or geographical area (e.g. city, county, region) where tourism substantially contributes to the local economy; a place frequented by people for relaxation or recreation (e.g. beach resort, ski resort).

Retail - A general property type or building type classification characterized by its usage for retail purposes. Subtypes include Grocery Anchored Retail, Other Anchored Retail, Free Standing Retail, Strip Center - Anchored, Strip Center - Unanchored, Mall - Super

Regional, Mall - Regional, Regional Center, Unanchored Retail, Single Tenant Investment Grade, Single Tenant Non-Investment Grade, Outlet Center, Other.

Retail Property - Property types range from super regional shopping centers with a gross leasable area greater than one million square feet to small stores with single tenants. See Shopping Center.

Retail Surrounding land Use - Identifies the general land use of the surrounding and/or adjacent properties in comparison to the collateral property. Retail uses include general retail uses including Grocery Anchored Retail, Other Anchored Retail, Free Standing Retail, Strip Center - Anchored, Strip Center - Unanchored, Mall - Super Regional, Mall - Regional, Regional Center, Unanchored Retail, Single Tenant Investment.

Retail Tenant Type - Characterizes the tenant type based on usage of the leased area; Retail usage generally includes most uses involving the sale of goods to consumers.

RevPAR - (Revenue per Available Room) is calculated by either (1) dividing net booked revenue by total available room nights, or (2) multiplying occupancy by average daily rate. A macro measurement to determine the amount of money a hotel earns for each room available.

Road Surfaces - Identifies the primary road surfaces on the collateral property. Options include All Paved, Mostly Paved, Some Paved, Dirt/Gravel or Other.

Rollover Probability - The probability that the tenant will not renew or extend the lease term at the time of lease expiration, expressed as a percentage from 0% to 100%. For example, a 35% rollover probability represents that the there is a 35% chance that the tenant will not renew the lease; resulting in a 65% renewal probability.

Room Exp. - An expense line item for hotel properties. The expenses related to room revenue,equipment rental, and public meeting room revenue, including functional areas such as the front office, reservations, housekeeping, laundry, uniform service, complimentary breakfast and bar. This item includes salaries and wages, payroll taxes and benefits, and other related expenses such as cable TV, china/glass/silver, cleaning supplies, complimentary food & beverage, contract cleaning/labor/laundry, cost of food/beverage, decorations, entertainment, equipment rental, glass/plastic supplies, guest satisfaction/supplies/transportation, happy hour appetizers, in-room entertainment, laundry allocation/supplies, linens, miscellaneous, office supplies, operating supplies, over/(short), paper supplies, printed supplies, promotion, reservations assessment, telephone admin., training materials, travel agent commissions, uniforms, VIP expense, walk expense, etc.

Room Revenue - A revenue line item for hotel properties. The income related to room revenue, equipment rental, and public meeting room revenue, including functional areas such as the front office, reservations, housekeeping, laundry, uniform service, complimentary breakfast and bar.

Rooms with Kitchen - In hotels, rooms with kitchens may include a refrigerator, stove/oven, dishwasher, etc.d

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