HUD Certification Exam Graded A+

Deed Restrictions - Legally enforceable terms that govern the use of real estate Redlining - The practice of refusing to make residential loans or imposing more onerous terms on any loans made because of the predominant race, color, national origin, religion, sex, disability, or familial status of the area's residents. Civil Rights Act of 1968 - Following the assassination of Dr. Martin Luther King Jr., Congress passed what monumental piece of legislation, which prohibits discrimination in housing sales, rentals, and financing based on race, color, national origin, religion, sex, disability and familial status? 7 - The Fair Housing Act, as amended, protects how many characteristics? Reasonable Modification - A property manager of an apartment complex that receives federal financial assistance installs a ramp so that a tenant in a wheelchair can easily access her first-floor apartment. Reasonable Accommodation - Housing provider has a policy of requiring tenants to come to the rental office to pay their rent. A tenant with a mental disability, who is afraid to leave her unit, is allowed to mail her rent payment. True - The Fair Housing Act does not prohibit a lender from showing potential clients information about different loans. Fair Housing Assistance Program (FHAP) - Provides annual funding to state and local agencies that enforce fair housing laws that are substantially equivalent to the Fair Housing Act. These funds go towards an agency's capacity building, administrative costs, investigative and enforcement efforts, training and other projects designed to support enforcement of fair housing law. Fair Housing Initiatives Program (FHIP) - Provides funding to fair housing organizations and nonprofits that assist people who may have been victims of housing discrimination. Marketing Analysis - Aim is to identify groups of people who would benefit most if targeted by the campaign, the characteristics of these people, and their expectations. Networking Event - The opportunity to increase awareness of the plans and actions of housing industry members, private organizations and foundations, public housing agencies, neighborhood groups, regional organizations, and others to further fair housing objectives. Personal Information - The section of the credit report that contains employer details. Account Information - The section of a credit report that contains information about a student loan. Public Records - The section of the credit report that contains court information such as a bankruptcy. Inquiries - The section of the credit report that will show recent attempts to open a credit card. Consumer Rights - The section of the credit report that contains information about how to correct inaccuracies. Account History - Credit: Payment history of accounts, including late payments, delinquencies, judgments, and liens. Amounts Owed - Credit: Ratio of total credit extended to the amount of credit owed. Length of Credit History - Credit: Overall length of credit history in the report as well as the average age of accounts. Types of Credit - Credit: Variety of accounts (e.g. credit card, auto loan, mortgage) New Credit - Credit: Number of recent credit inquiries, as well as new credit accounts. AnnualCreditR - Where does a client go to get a free credit report? Fair Credit Reporting Act (FCRA) - You have the right to dispute information in your credit file that is incomplete, inaccurate, or unverifiable. Fair and Accurate Credit Transactions Act (FACTA) - You have the right to a free annual credit report. Fair and Accurate Credit Transactions Act (FACTA) - You have the right to place a fraud alert on your credit file. Fair Credit Reporting Act (FCRA) - You have the right to know what is in your credit file. Fair Credit Billing Act (FCBA) - Which federal law protects a consumer's right to dispute a billing error associated with his/her credit card account. Fair Credit Reporting Act (FCRA) - What act limits employers access to persons credit report. Wire Transfer Fee - Fee charged when a client sends a payment to another account electronically through electronic funds transfer (EFT) Overdraft Fee - Fee charged when an account doesn't have money to cover a purchase and the financial institution loans money to complete the payment. Stop Payment Fee - Fee charged to invalidate a check before it is cashed. NSF Fee - Fee charged if there is not enough money in an account to cover a check payment of other purchase. CD; Money Market; High-Interest Account - Examples of accounts that would be ideal for short-term large purchase savings Renters Insurance - An insurance policy that provides coverage for damages, within a rental property, to renters' belongings and liability. Discount Points - A type of pre-paid interest normally paid at closing and generally calculated to be equivalent to 1% of the total loan amount Default - The inability to make timely payments or fulfill legal obligations of loan terms. Equity - Value of ownership interest in property. Foreclosure - A legal process in which mortgaged property is sold to pay the loan of a defaulting borrower. Escrow - Funds to be used for specific purposes by parties carrying out a mutual transaction, deposited with a third party. Closing Costs - Fees for final property transfer that are not included in the price of the property. Homeowners Insurance - An insurance policy that can provide coverage for damages to a dwelling and contents that belong to the homeowner. Front-end Ration - A rate that calculates a borrower's housing-related obligations as a percentage of gross monthly income. AKA - Housing Ratio Conventional Loan - A mortgage loan backed by private lenders. Loans with a DP less than 20% of purchase price may require private mortgage insurance (PMI) Principal - The amount of money borrowed to buy a house or the amount of the loan that has not been paid back to the lender. Mortgage Insurance Premium (MIP) - A monthly payment, usually part of the mortgage payment for FHA loans, paid by a borrower for mortgage insurance. Private mortgage Insurance (PMI) - Insurance policy that protects a lender from potential risks when a homebuyer pays less than 20% for a down payment. Ground Rent - An arrangement in which the owner of a dwelling or structure does not own the land on which the structure resides. Association Dues - Charged by community or Homeowners Association to pay for repairs, upkeep, landscaping, improvements and property management. Adjusted Gross Income - 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. Profit and Loss Statments - A summary of revenue, costs, and expenses incurred during a defined period, such as a fiscal year. Back-End Ratio - A rate that calculates a borrower's total monthly debt, including housing and other debt obligations, as a percentage of gross monthly income. Character - Credit history, employment history, and housing stability to determine the likeliness that the borrower will repay their debts Capacity - Lender considers consistency of employment and income, adequacy of income to repay debt, recurring debts and frequency and type of wages Capital - Lenders inquire about how much money a borrower has saved to pay a deposit or down payment for the home intended to purchase. Collateral - Lenders often request a borrower to pledge specific property or assets as collateral to secure repayment of loan. Front-end ratio for obtaining a conventional loan - 28% Front-end ratio for obtaining an FHA loan - 31% Affordable front-end ratio for renters - 30% Per FHA, you are considered self-employed if you have ___% or greater ownership interest in a business. - 25% Subprime Mortgage Loans - A type of mortgage with less stringent lending and underwriting terms and conditions, usually offered to borrowers with blemished or limited credit histories. Type of mortgage that is a good fit for those that have limited funds for a down payment and closing costs - FHA Mortgage