What is default risk?
The lender’s risk that the borrower stops paying. Managed through DSCR/LTV/debt-yield underwriting, collateral quality, reserves, and recourse or carve-out guarantees.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.