HUD Housing Counselor Exam 2022 study guide with
complete solution
Adjustable Rate Mortgage (ARM)
Adjustable rate mortgages have an initial rate that applies for a defined period of time
(typically from one month to 10 years), then adjusts at pre-determined intervals for the
life of the loan. Interest rates can increase or decrease when adjusted.
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.
AFFH
Affirmatively Furthering Fair Housing
AFHMP
Affirmative Fair Housing Marketing Plan
Analysis of Impediments (AI)
Analysis of Impediments is a review of impediments or barriers that affect the rights of
fair housing choice. It covers public and private policies, practices, and procedures
affecting housing choice. Impediments to fair housing choice are defined as any actions,
omissions, or decisions that restrict, or have the effect of restricting, the availability of
housing choices, based on race, color, religion, sex, disability, familial status, or national
origin. The AI supports fair housing planning; provides essential information to policy
makers, administrative staff, housing providers, lenders, and fair housing advocates;
and assists in building public support for fair housing efforts.
Area Median Income (AMI)
The midpoint in the family income range for a metropolitan statistical area or for the
non-metropolitan parts of a state. Determined annually by HUD, the figure often is used
as a basis to stratify incomes into very low, low, moderate, and above moderate.
Frequently used to determine income eligibility for various housing programs.
Arrearages
The total amount of past due payments owed to a lender from a borrower in mortgage
payments or to a landlord from a tenant in rental payments. Also called arrears.
Assistance Animal
An assistance animal is not considered a pet. it is an animal that works, provides
assistance, or performs tasks for the benefit of a person with a disability, or provides
emotional support that alleviates one or more identifies symptoms or effects of a
person's disability. For purposes of reasonable accommodation requests, the Fair
Housing Act does not require an assistance animal to be individually trained or certified.
While dogs are the most common type of assistance animal, other animals can also be
assistance animals.
Association Dues
Charged by a community or Homeowners Association to pay for repairs, upkeep,
landscaping, improvements, and property management.
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. Frequently used by lenders to
qualify borrowers for a mortgage. Also called a debt-to-income ratio.
Balloon Payment
An oversize payment due at the end of a mortgage.
Blockbusting
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
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
Community Development Block Grant
CFPB
Consumer Financial Protection Bureau
Closing Costs
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
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.
Community Development Block Grant Program
HUD program that provides grants to states and localities to provide decent housing
and a suitable living environment and to expand economic opportunities, principally for
low- and moderate-income persons.
Complainant
A person, group, or company that files a complaint which claims that someone has
violated a law.
Conciliation
The attempted resolution of issues raised by a complaint, or by the investigation of such
complaint, through informal negotiations involving the aggrieved person, the
respondent, and the HUD Secretary.
Conciliation Agreement
A written agreement setting terms for the resolution of the issues in conciliation.
Consolidated Plan
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
complete solution
Adjustable Rate Mortgage (ARM)
Adjustable rate mortgages have an initial rate that applies for a defined period of time
(typically from one month to 10 years), then adjusts at pre-determined intervals for the
life of the loan. Interest rates can increase or decrease when adjusted.
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.
AFFH
Affirmatively Furthering Fair Housing
AFHMP
Affirmative Fair Housing Marketing Plan
Analysis of Impediments (AI)
Analysis of Impediments is a review of impediments or barriers that affect the rights of
fair housing choice. It covers public and private policies, practices, and procedures
affecting housing choice. Impediments to fair housing choice are defined as any actions,
omissions, or decisions that restrict, or have the effect of restricting, the availability of
housing choices, based on race, color, religion, sex, disability, familial status, or national
origin. The AI supports fair housing planning; provides essential information to policy
makers, administrative staff, housing providers, lenders, and fair housing advocates;
and assists in building public support for fair housing efforts.
Area Median Income (AMI)
The midpoint in the family income range for a metropolitan statistical area or for the
non-metropolitan parts of a state. Determined annually by HUD, the figure often is used
as a basis to stratify incomes into very low, low, moderate, and above moderate.
Frequently used to determine income eligibility for various housing programs.
Arrearages
The total amount of past due payments owed to a lender from a borrower in mortgage
payments or to a landlord from a tenant in rental payments. Also called arrears.
Assistance Animal
An assistance animal is not considered a pet. it is an animal that works, provides
assistance, or performs tasks for the benefit of a person with a disability, or provides
emotional support that alleviates one or more identifies symptoms or effects of a
person's disability. For purposes of reasonable accommodation requests, the Fair
Housing Act does not require an assistance animal to be individually trained or certified.
While dogs are the most common type of assistance animal, other animals can also be
assistance animals.
Association Dues
Charged by a community or Homeowners Association to pay for repairs, upkeep,
landscaping, improvements, and property management.
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. Frequently used by lenders to
qualify borrowers for a mortgage. Also called a debt-to-income ratio.
Balloon Payment
An oversize payment due at the end of a mortgage.
Blockbusting
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
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
Community Development Block Grant
CFPB
Consumer Financial Protection Bureau
Closing Costs
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
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.
Community Development Block Grant Program
HUD program that provides grants to states and localities to provide decent housing
and a suitable living environment and to expand economic opportunities, principally for
low- and moderate-income persons.
Complainant
A person, group, or company that files a complaint which claims that someone has
violated a law.
Conciliation
The attempted resolution of issues raised by a complaint, or by the investigation of such
complaint, through informal negotiations involving the aggrieved person, the
respondent, and the HUD Secretary.
Conciliation Agreement
A written agreement setting terms for the resolution of the issues in conciliation.
Consolidated Plan
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
