HUD Housing Counselor Exam/ 71 Questions
with Definitive Solutions
Association Dues - Answer: Charged by a community or Homeowners Association
to pay for repairs, upkeep, landscaping, improvements, and property
management.
Back-End Ratio - Answer: 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 - Answer: An oversize payment due at the end of a mortgage.
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, Blockbusting - Answer: 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 - Answer: 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 - Answer: Community Development Block Grant
CFPB - Answer: Consumer Financial Protection Bureau
Closing Costs - Answer: Fees for final property transfer that are not included in the
price of the property. Typical closing costs can include loan origination fees,
discount points, appraisal fee, survey, title insurance, legal fees, real estate
professional fees, prepayments of taxes and insurance, etc. While closing costs
often range from 3% to 4% of the purchase price of the home, they can be lower
or higher depending on the geographic region or loan type.
Collection - Answer: An account in default with an original creditor and sold to a
third-party debt collector that will continue attempts to collect past due
payments.
Page 2 of 13
with Definitive Solutions
Association Dues - Answer: Charged by a community or Homeowners Association
to pay for repairs, upkeep, landscaping, improvements, and property
management.
Back-End Ratio - Answer: 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 - Answer: An oversize payment due at the end of a mortgage.
Page 1 of 13
, Blockbusting - Answer: 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 - Answer: 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 - Answer: Community Development Block Grant
CFPB - Answer: Consumer Financial Protection Bureau
Closing Costs - Answer: Fees for final property transfer that are not included in the
price of the property. Typical closing costs can include loan origination fees,
discount points, appraisal fee, survey, title insurance, legal fees, real estate
professional fees, prepayments of taxes and insurance, etc. While closing costs
often range from 3% to 4% of the purchase price of the home, they can be lower
or higher depending on the geographic region or loan type.
Collection - Answer: An account in default with an original creditor and sold to a
third-party debt collector that will continue attempts to collect past due
payments.
Page 2 of 13
