HUD Exam Prep (verified)2023

HUD Exam Prep (verified)2023Conventional Loan Front end 28% Back end 36% can go up to 45% to 50%(debt to income), backed by private lenders. AKA prime loans. Good credit, 20% down payment. May have interest only terms FHA Front end 31% Back end 43% Limited funds, bad credit, bankruptcy, high debt to income ratio. EEM (Energy) FHA Front end 33% Back end 45% VA 41% USDA Front End 29% Back End 41%, low-to-moderate income, must live rural area, no down payment, competitive rates. Bellow 115% median income. Loan term 33 to 38 yrs Equal Credit Opportunity Act (ECOA) A federal act, which prohibits discrimination by lenders on the basis of sex or marital status in any aspect of a credit transaction. Front end Ratio PITIA/ Gross Income Within three days of receiving a loan application, lenders are required to supply the client with Loan Estimate How may years at a job to show employment stability? At least 2 years Which factor determines whether the client will have to pay private mortgage insurance versus mortgage insurance premium Type of loan The Fair Housing Act The federal law that prohibits discrimination in housing based on race, color, religion, sex, handicap, familial status, and national origin The Housing and Urban Development Act providing government-insured loans to moderate-income people. The Dodd-Frank Act protects borrowers from predatory lending practices Affirmatively Furthering Fair Housing (AFFH) Advocating for lenders to operate in underserved areas After how many days can foreclosure proceedings begin if the client is not being evaluated for loss mitigation, and has missed payments on an FHA loan 120 FHA 203K Loan allows the homeowner to refinance the home loan to perform repair Streamlined 203K Loan minor rehabilitation and/or home improvement projects that will not require the involvement of consultants, engineers, and/or architects key advantage of the client using a real estate agent versus selling her house on her own Real estate agents negotiate on behalf of the client. A means test bankruptcy qualification that considers income and equity in assets to determine if a client has the ability to repay part of the debt Default when a payment has not been made after 60 to 90 days. FHA 30 days Delinquent timely mortgage payments by the end of the grace period (14 day) Which notice must the servicer send the client once the mortgage is delinquent and before 45 days past due? Housing counseling advertisement that guarantees a government-approved loan modification must be reported to...... Report the company to the Federal Trade Commission (FTC) The only mortgage loan product that allows family assistance FHA - USDA and VA do not require down payment, and conventional loans won't allow family funds Consumer Finance Protection Bureau CFPB Easier-to-use mortgage disclosure forms that clearly outline the terms of a mortgage to the borrower Satisfies efforts to Affirmatively Further Fair Housing Reviewing marketing materials of local mortgage lenders satisfies efforts to Affirmatively Further Fair Housing Chapter 7 Bankruptcy Means test, Liquidation of assets, best for client with no assets Chapter 13 bankrupcy retain house/car, Wager earner plan-pay all or part of debts 3-5 yrs,