A fixed-income portfolio manager is conducting a performance analysis on an agency-MBS and the underlying pool of commercial mortgages. The manager obtains the following information:

• The constant prepayment rate (CPR) of the commercial mortgages loan pool: 14.38%
• Debt payments per year on the commercial mortgage loans: USD 730,000
• Net operating income per year of the commercial mortgage property: USD 1,825,000

The manager uses the following metrics as benchmarks for the commercial mortgage sector analysis:

• Debt service coverage ratio (DSCR) of a benchmark obligor: 2.5
• Single monthly mortality (SMM) rate of a benchmark security: 0.85%

Which of the following statements is correct?