HUD Housing Counselor Exam/ 71 Questions
with Definitive Solutions
Conciliation Agreement - Answer: A written agreement setting terms for the
resolution of the issues in conciliation.
Consolidated Plan - Answer: A plan designed to help states and local jurisdictions
to assess their affordable housing and community development needs and market
conditions, and to make data-driven, location-based investment decisions.
Conventional Loan - Answer: A mortgage loan backed by private lenders. Though
not insured by any government program, such as FHA or VA, loans with a down
payment less than 20% of the purchase price may require private mortgage
insurance.
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, Conventional Mortgage - Answer: A private sector loan typically issued to
borrowers with high credit ratings. Excludes subprime loans or mortgages insured
by the U.S. government.
Credit Score - Answer: The numerical interpretation of a consumer's
creditworthiness based on information in his or her credit report.
Debt-to-Income 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 back-end ratio.
Deed-in-Lieu - Answer: A process that allows a homeowner to avoid foreclosure,
providing a deed "in lieu" of foreclosure to the lender. Except in certain states or
by agreement between homeowner and servicer, the sale does necessarily satisfy
the borrower's debt and may result in a deficiency judgement. Though it helps
avoid foreclosure, the process does not allow the homeowner to stay in the home.
Deed Restrictions - Answer: Legally enforceable terms that govern the use of
property. These terms are transferred with the property deed. Discriminatory
deeds are illegal and unenforceable. Also known as a covenant, condition,
restriction, or restrictive covenant.
Page 2 of 13
with Definitive Solutions
Conciliation Agreement - Answer: A written agreement setting terms for the
resolution of the issues in conciliation.
Consolidated Plan - Answer: A plan designed to help states and local jurisdictions
to assess their affordable housing and community development needs and market
conditions, and to make data-driven, location-based investment decisions.
Conventional Loan - Answer: A mortgage loan backed by private lenders. Though
not insured by any government program, such as FHA or VA, loans with a down
payment less than 20% of the purchase price may require private mortgage
insurance.
Page 1 of 13
, Conventional Mortgage - Answer: A private sector loan typically issued to
borrowers with high credit ratings. Excludes subprime loans or mortgages insured
by the U.S. government.
Credit Score - Answer: The numerical interpretation of a consumer's
creditworthiness based on information in his or her credit report.
Debt-to-Income 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 back-end ratio.
Deed-in-Lieu - Answer: A process that allows a homeowner to avoid foreclosure,
providing a deed "in lieu" of foreclosure to the lender. Except in certain states or
by agreement between homeowner and servicer, the sale does necessarily satisfy
the borrower's debt and may result in a deficiency judgement. Though it helps
avoid foreclosure, the process does not allow the homeowner to stay in the home.
Deed Restrictions - Answer: Legally enforceable terms that govern the use of
property. These terms are transferred with the property deed. Discriminatory
deeds are illegal and unenforceable. Also known as a covenant, condition,
restriction, or restrictive covenant.
Page 2 of 13
