HUD Housing Counselor Exam
Questions and Answers10
Adjustable Rate Mortgage (ARM) - ANSWERS-Adjustable rate mortgages have an initial rate that
applies for a defined period of time (typically from one month to 10 years), then adjusts at pre-
determined intervals for the life of the loan. Interest rates can increase or decrease when
adjusted.
Adjusted Gross Income - ANSWERS-Gross income minus adjustments, or reductions, that one is
eligible for, such as deductions for unreimbursed business expenses, tuition and fees, and
contributions to certain retirement accounts.
AFFH - ANSWERS-Affirmatively Furthering Fair Housing
AFHMP - ANSWERS-Affirmative Fair Housing Marketing Plan
Analysis of Impediments (AI) - ANSWERS-Analysis of Impediments is a review of impediments or
barriers that affect the rights of fair housing choice. It covers public and private policies,
practices, and procedures affecting housing choice. Impediments to fair housing choice are
defined as any actions, omissions, or decisions that restrict, or have the effect of restricting, the
availability of housing choices, based on race, color, religion, sex, disability, familial status, or
national origin. The AI supports fair housing planning; provides essential information to policy
makers, administrative staff, housing providers, lenders, and fair housing advocates; and assists
in building public support for fair housing efforts.
Area Median Income (AMI) - ANSWERS-The midpoint in the family income range for a
metropolitan statistical area or for the non-metropolitan parts of a state. Determined annually
by HUD, the figure often is used as a basis to stratify incomes into very low, low, moderate, and
above moderate. Frequently used to determine income eligibility for various housing programs.
, Arrearages - ANSWERS-The total amount of past due payments owed to a lender from a
borrower in mortgage payments or to a landlord from a tenant in rental payments. Also called
arrears.
Assistance Animal - ANSWERS-An assistance animal is not considered a pet. it is an animal that
works, provides assistance, or performs tasks for the benefit of a person with a disability, or
provides emotional support that alleviates one or more identifies symptoms or effects of a
person's disability. For purposes of reasonable accommodation requests, the Fair Housing Act
does not require an assistance animal to be individually trained or certified. While dogs are the
most common type of assistance animal, other animals can also be assistance animals.
Association Dues - ANSWERS-Charged by a community or Homeowners Association to pay for
repairs, upkeep, landscaping, improvements, and property management.
Back-End Ratio - ANSWERS-A rate that calculates a borrower's total monthly debt, including
housing and other debt obligations, as a percentage of gross monthly income. Frequently used
by lenders to qualify borrowers for a mortgage. Also called a debt-to-income ratio.
Balloon Payment - ANSWERS-An oversize payment due at the end of a mortgage.
Blockbusting - ANSWERS-To convince, or attempt to convince, a person to sell or rent a dwelling
because of the entry, or prospective entry, into the neighborhood of a person or persons of a
particular race, color, religion, sex, familial status, national origin, or with a disability.
Cash-for-keys - ANSWERS-An alternative to a legal eviction following foreclosure. The occupant
receives cash funds from the servicer in exchange for turning in the keys and vacating the
property. Certain conditions apply, such as returning the property in broom-clean condition and
with all appliances.
CDBG - ANSWERS-Community Development Block Grant
Questions and Answers10
Adjustable Rate Mortgage (ARM) - ANSWERS-Adjustable rate mortgages have an initial rate that
applies for a defined period of time (typically from one month to 10 years), then adjusts at pre-
determined intervals for the life of the loan. Interest rates can increase or decrease when
adjusted.
Adjusted Gross Income - ANSWERS-Gross income minus adjustments, or reductions, that one is
eligible for, such as deductions for unreimbursed business expenses, tuition and fees, and
contributions to certain retirement accounts.
AFFH - ANSWERS-Affirmatively Furthering Fair Housing
AFHMP - ANSWERS-Affirmative Fair Housing Marketing Plan
Analysis of Impediments (AI) - ANSWERS-Analysis of Impediments is a review of impediments or
barriers that affect the rights of fair housing choice. It covers public and private policies,
practices, and procedures affecting housing choice. Impediments to fair housing choice are
defined as any actions, omissions, or decisions that restrict, or have the effect of restricting, the
availability of housing choices, based on race, color, religion, sex, disability, familial status, or
national origin. The AI supports fair housing planning; provides essential information to policy
makers, administrative staff, housing providers, lenders, and fair housing advocates; and assists
in building public support for fair housing efforts.
Area Median Income (AMI) - ANSWERS-The midpoint in the family income range for a
metropolitan statistical area or for the non-metropolitan parts of a state. Determined annually
by HUD, the figure often is used as a basis to stratify incomes into very low, low, moderate, and
above moderate. Frequently used to determine income eligibility for various housing programs.
, Arrearages - ANSWERS-The total amount of past due payments owed to a lender from a
borrower in mortgage payments or to a landlord from a tenant in rental payments. Also called
arrears.
Assistance Animal - ANSWERS-An assistance animal is not considered a pet. it is an animal that
works, provides assistance, or performs tasks for the benefit of a person with a disability, or
provides emotional support that alleviates one or more identifies symptoms or effects of a
person's disability. For purposes of reasonable accommodation requests, the Fair Housing Act
does not require an assistance animal to be individually trained or certified. While dogs are the
most common type of assistance animal, other animals can also be assistance animals.
Association Dues - ANSWERS-Charged by a community or Homeowners Association to pay for
repairs, upkeep, landscaping, improvements, and property management.
Back-End Ratio - ANSWERS-A rate that calculates a borrower's total monthly debt, including
housing and other debt obligations, as a percentage of gross monthly income. Frequently used
by lenders to qualify borrowers for a mortgage. Also called a debt-to-income ratio.
Balloon Payment - ANSWERS-An oversize payment due at the end of a mortgage.
Blockbusting - ANSWERS-To convince, or attempt to convince, a person to sell or rent a dwelling
because of the entry, or prospective entry, into the neighborhood of a person or persons of a
particular race, color, religion, sex, familial status, national origin, or with a disability.
Cash-for-keys - ANSWERS-An alternative to a legal eviction following foreclosure. The occupant
receives cash funds from the servicer in exchange for turning in the keys and vacating the
property. Certain conditions apply, such as returning the property in broom-clean condition and
with all appliances.
CDBG - ANSWERS-Community Development Block Grant
