Mortgage Loans and Fair Housing Act: A Comprehensive Guide, Exams of Nursing

Download Mortgage Loans and Fair Housing Act: A Comprehensive Guide and more Exams Nursing in PDF only on Docsity! HUD Final Exam 100% CORRECTLY VERIFIED ANSWERS GRADED A+ BEST EXAM SOLUTION LATEST VERSION 2024 Conventional Loan - Answer 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 - Answer Front end 31% Back end 43% Limited funds, bad credit, bankruptcy, high debt to income ratio. EEM (Energy) FHA - Answer Front end 33% Back end 45% VA - Answer 41% USDA - Answer 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) - Answer 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 - Answer PITIA/ Gross Income Within three days of receiving a loan application, lenders are required to supply the client with - Answer Loan Estimate How may years at a job to show employment stability? - Answer At least 2 years Which factor determines whether the client will have to pay private mortgage insurance versus mortgage insurance premium - Answer Type of loan The Fair Housing Act - Answer 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 - Answer providing government-insured loans to moderate-income people. The Dodd-Frank Act - Answer protects borrowers from predatory lending practices Affirmatively Furthering Fair Housing (AFFH) - Answer 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 - Answer 120 FHA 203K Loan - Answer allows the homeowner to refinance the home loan to perform repair Streamlined 203K Loan - Answer 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 - Answer Real estate agents negotiate on behalf of the client. A means test - Answer bankruptcy qualification that considers income and equity in assets to determine if a client has the ability to repay part of the debt Default - Answer when a payment has not been made after 60 to 90 days. FHA 30 days Delinquent - Answer 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? - Answer Housing counseling advertisement that guarantees a government-approved loan modification must be reported to...... - Answer Report the company to the Federal Trade Commission (FTC) The only mortgage loan product that allows family assistance - Answer FHA - USDA and VA do not require down payment, and conventional loans won't allow family funds Consumer Finance Protection Bureau CFPB - Answer Easier-to-use mortgage disclosure forms that clearly outline the terms of a mortgage to the borrower Satisfies efforts to Affirmatively Further Fair Housing - Answer Reviewing marketing materials of local mortgage lenders satisfies efforts to Affirmatively Further Fair Housing Chapter 7 Bankruptcy - Answer Means test, Liquidation of assets, best for client with no assets Chapter 13 bankrupcy - Answer retain house/car, Wager earner plan-pay all or part of debts 3-5 yrs, Total Tenant Payment - Answer Tenants will pay the highest amount of either 30% (family, disability, elderly) 10%(gross income) welfare rent Federal Housing Choice Voucher Program (Sec. 8) - Answer Assists very low- income families, elderly and disabled. Distributed by PHAs for housing in private market. The Civil Rights Act of 1866 - Answer all people born in the United States (except for American Indians) were natural citizens. All citizens had the full and equal right to use, purchase, lease, and transfer real estate and property without distinction of race, color, or previous condition of slavery. 1896, Plessy v. Ferguson - Answer Separate but equal. providing segregated programs, services, and facilities including public accommodations and housing 1933, Home Owners' Loan Corporation (HOLC) - Answer The HOLC was created by Congress to avoid mass foreclosure during the Great Depression. The mission was to refinance mortgages in default to help borrowers avoid foreclosure. Redlining - Answer Refusing to make loans or imposing more onerous terms because of race, religion.... Deed Restrictions - Answer Clauses in a deed limiting the future uses of the property and terms are transferred with the deed. 1948, Shelly v. Kraemer - Answer Deed restrictions and covenants were deemed illegal and unenforceable. Violate the Fair Housing Act 1954, Brown v. Board of Education - Answer Overturned the "separate but equal" policy established in Plessy v. Ferguson. 1962, Executive Order 11063 - Answer President JFK signed this, prohibiting discrimination in the sale, leasing, rental, or other use of properties and facilities backed by federal funds Civil Rights Act of 1964 - Answer Prohibited discrimination on the basis of race, color, or national origin in programs and activites that receive federal funding. Housing and Urban Development Act of 1968 - Answer expand the availability of government-secured home loans to moderate-income families 1974 and 1988, Amendments to the Fair Housing Act - Answer expanded the law to include sex, disability and familial status total of 7 characteristics A civil action in US District Court or state court can be filed within how many years of a violation? - Answer 2 years Civil Rights Act of 1964 after MLK assasination - Answer AKA Fair Housing ACT prohibits discrimination in housing sales, rentals, loans Aggrieved person - Answer has not been discriminated against, but has been injured in other ways by a discriminatory housing practice Blockbusting - Answer To convince or attempt to convince a person that a neighborhood is changing demographic 3 ways to file a fair housing complaint - Answer HUD Nonprofit Fair Housing Org. /Fair Housing Initiative Program (FHIP) State or Local Fair Housing Agency /Fair Housing Ass. Program(FHAP) 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-cased investment decisions. Subsidized Housing - Answer Privately owned housing whose owners agree to lease their properties to low-or moderate-income families in exchange for a subsidy from the government Unsubsidized Housing - Answer Privately owned housing rented at an affordable price Fair Housing Initiative Program (FHIP) - Answer Provides funding to fair housing orgs. and non profits that assist ppl who have been discriminated. Identify Gov. agencies that handle complaints. Sends testers. Assists aggrieved individuals Fair Housing Assistance Program (FHAP) - Answer Offers annual funding to local and state agencies that enforce Fair Housing Act Protected Characteristics under Fair Housing - Answer Race, Color, National Origin, Religion, Sex, Disability, Familial status Formula for Total Tenant Payment - Answer 30% monthly adjusted Income 10% monthly gross income Front end Ratio renters - Answer Monthly Housing expenses/gross monthly income Renters: rent + insurance FHA upfront premium (UFMIP) - Answer 1.75% With whom can someone file aggrievances? - Answer Public Housing Authority Maximum Monthly Housing Payment - Answer Front end*Gross (Back end*Gross)-debts choose the lowest value Back end Ratio AKA - Answer Debt to Income Ratio housing+other debt/gmi Which characteristics remained unprotected after the Housing Act 1964 - Answer Sex, Disability and Familial status FHA Energy efficient ratios - Answer Front 33%, Back 45% HOME Investment Partnerships Program - Answer Down payment assistance (DPA). provides grants to states and localities for building, buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low income people Community Development Block Grant Program - Answer Down payment assistance (DPA) - provides grants to states and localitites to provide decent housing and a suitable living environment and to expand economic opportunities, for low to moderate income persons For housing programs what is the % median income to qualify? - Answer Not to exceed 50% Character - Answer Credit history, employment history, and housing stability Capacity - Answer Ability to pay, consistency of employment/income, recurring debts, frequency and type of wages Capital - Answer Cash assets, how much can put down Collateral - Answer Assets to secure repayment Renter's ratios - Answer Front end 30% Back end 36% Back end Ratio - Answer AKA debt to income ratio total monthly debt expenses/gross income Front end Ratio/housing ratio - Answer housing expenses/gross monthly income Lender - Answer Makes loans for real estate purchases. Loan officer - Answer Solicits homebuyers for loans and processes loans Closing agent/settlement agent - Answer Oversees that the tittle is transferred and payment is made Assessor - Answer Gov. official determines the value of property for tax Escrow account - Answer Where funds are held to to carry a mutual transaction. Earnest money - Answer Check given from buyer to seller to show interest in purchasing. 1% to 10% of home purchase Disocunt points - Answer Pre-paid interest at closing 1% Service Members Civil Relief Act - Answer Protection for service persons against eviction, foreclosures, default judgements 4506-T - Answer Request for Transcript of Tax Return HomeCorps Program - Answer Mitigating future impacts of the foreclosure by providing advocacy to borrowers Borrower Representation Initiative - Answer Mass. Legal Ass. Corp (MLAC) and National Consumer Law Center (NCLC) staffed by 19 attorneys to offer representation for foreclosure-related cases Loan Modification Initiative - Answer Offered direct loan mod advocacy to Mass borrowers Distressed Properties Identification and Revitalization Grant - Answer prioritize a list of real estate owned properties and to ensure that individual property owners comply with state and local ordinances to bring properties into a state of good repair FHA contact for borrowers at risk of default - Answer servicer must begin contact by day 10. Other FHA borrowers by day 17. Written communications for all borrowers by day 20 Judicial Foreclosure - Answer Notice of intent is sent. If contested will go to court. If judgment allowed to go forward, homeowner still has 30 days to cure delinquency in many states. Non-Judicial Foreclosure - Answer Servicer issues a Notice of Default (NOD) after 120 days of delinquency. If not cured homeowner receives a Notice of Sale (NOS) usually 90 days after the NOD. Borrower has 5 to 10 days before the sale to cure delinquency (pay all past due amounts, arrearages, fess ad interest) Additional living expense coverage - Answer renter's insurance coverage if temporarily cannot live in their rental unit due to damage from a peril Home Affordable Mod Program (HAMP) - Answer Lowered mortgage payments. Offered reduced interest rates for 5 years then would increase. Fannie/Freddie Flex Modification - Answer 20% payment reduction. Eligibility: be 60 or more days delinquent, primary resident. Submit a Borrower Response Package (BRS) Request Mortgage Assistance (RMA) - Answer Complete form for loan modification. Need Dodd-Frank Certification Hope LoanPort (HLP) - Answer program where the loan mods are submitted. Servicer must update every 10 days. Steps for an FHA mortgage facing foreclosure (waterfall) - Answer 1. bring to current 2. Formal/Informal Forbearance (85% surplus income) 3. Special Forbearance (unemployment) 4. Loan Mod (Trial payment plan) 5. Pre-foreclosure sale 6. Deed-in-lieu Partial Claim FHA - Answer Defers some principal so monthly payments are affordable. Payments after sale or payoff Standalone Partial Claim FHA - Answer Borrower is 3 months past due. Interest rate is at or bellow market rate. Foreclosure - Answer A legal process in which mortgaged property is sold to pay the loan of the defaulting borrower. Deficiency Judgement - Answer Amount owed to servicer after a foreclosure, short sale, or deed-in-lieu if sale doesn't cover full amount owed. Least credit impact loss mitigation options - Answer Short sale or deed-in-lieu GSE Mortgage disposition options - Answer Short sale or deed-in-lieu can qualify for up to $3k in relocation assistance, and begin credit repair in 2 years Cash for Keys - Answer The occupant receives cash from the servicer in exchange for turning in the keys and vacating the property. Returning the property in broom- clean condition with all appliances Eviction - Answer Someone is expelled from a property Lease Types - Answer Written and Oral(recognized and enforced in many states) Tenancy Types - Answer Contractual, Tenancy at will (verbal, not formal), Tenancy at Sufferance (reside in home after lease expired with same conditions) Renter's insurance Content Coverage - Answer Personal property destroyed by certain perils: clothing laptops, furniture Renter's insurance Loss-of-Use Coverage - Answer Can't live in the home so it covers living expenses Renter's Insurance Personal Liability Coverage - Answer Funding for defense lawyer if policy holder is sued Add-on Renter's insurance - Answer AKA "Riders" and "Endorsements" earthquake, business merch, business liability Insurance Perils - Answer fire, windstorm, hail, vandalism, theft. Holdover Eviction - Answer landlord is evicting someone who breaches terms of the lease unrelated to payment Unlawful Detainer - Answer remaining in a rental property while in violation of the conditions outlined in the lease Writ of Possession - Answer A court order that serves as an eviction from a property. Payment History has to do with which 4 C's of creditworthimess - Answer Character HELOC loan - Answer Low interest rate and can be paid off over a long period of time Making Home Affordable Program - Answer Assist homeowners in avoiding foreclosure Subprime Lending - Answer Ability to Repay and Qualified Mortgage Which retention option would offer principal reduction - Answer Loan Modfication FHA Partial Claim - Answer FHIP - Answer program provides funds to nonprofits and organizations to assist potential aggrieved persons FHAP - Answer Program provides funds to states and localities to enforce fair housing protections Unlawful Detainer - Answer remaining in a rental property while in violation of the conditions outlined in the lease. Subprime Lending - Answer Poor credit. Charge high interest rates. Low credit borrowers. Mortgages they couldn't afford Tenancy at Sufferance - Answer Residing in the apartment after lease expired Tenancy at Will - Answer Tenant has permission to reside in the home without a lease. What's included in renter's insurance? - Answer covers damage to personal possessions inside a home destroyed by disasters such as fire, smoke, lightning, theft, vandalism, windstorm, and water Rent ratios - Answer Front 30% back 36% Front end is rent and rental insurance Total Tenant Payment= - Answer monthly adjusted income*30% monthly gross income*10% whichever is the highest Calculate arrearage payment - Answer income-mortgage-expenses=surplus income arrearages/(.85*surplus) = number of months