HUD Counseling Exam - Module 5 Avoiding Foreclosure Exam Questions And Answers Verified 100% Correct

HUD Counseling Exam - Module 5 Avoiding Foreclosure Exam Questions And Answers Verified 100% Correct what does retention mean in terms of loss mitigation? - ANSWER homeowner wanting to remain in the home what does disposition mean in terms of loss mitigation? - ANSWER homeowner wanting to transition out of the home what does imminent default mean? - ANSWER a borrower who is not yet in default, but is currently delinquent and has a high risk of defaulting eligibility for retention within loss mitigation can be restricted based on what? - ANSWER 1. unemployment 2. whether the homeowner occupies the home as their primary residence 3. if the borrower has filed for bankruptcy 4. where the client is at in the foreclosure process when are FHA loans considered delinquent? - ANSWER after 30 days what is an emergency budget? - ANSWER a household budget created to increase savings, reduce expenses, and/or pay down debt in financial emergency situations T or F: increases in verifiable income may impact qualification for loss mitigation options and should not be reported to the servicer - ANSWER false; increases may impact qualification and they should always be reported to the servicer what are possible indicators that a client will not be able to remain in their home? - ANSWER 1. temporary or permanent disability of the homeowner, which prevents them from working 2. illness or disability of a family member, which requires the homeowner to stop working to care for them 3. drastic reduction in income that will not be overcome 4. job transfer at a time when the house cannot be sold because homeowner owes more than it is worth 5. death of an income-earning borrower 6. divorce or separation what does MHA stand for? - ANSWER making home affordable in [what year], the federal government launched MHA, an initiative to [what] - ANSWER 2009; assist struggling borrowers what does HAMP stand for? - ANSWER home affordable modification program what does HARP stand for? - ANSWER home affordable refinance program MHA helped set standards for permanent replacements to staple components like which two programs? - ANSWER HAMP and HARP what does FHFA stand for? - ANSWER federal housing finance agency what was HARP designed for? - ANSWER to assist homeowners who were current on mortgage payments but unable to secure traditional refinancing due to declining home value explain the fannie mae and freddie mac flex modification - ANSWER leverages fannie mae and freddie mac standard and streamline modifications, meaning modifications can be applied to all mortgage loan delinquencies and to mortgage loans determined to be in imminent default what is the purpose of the fannie mae and freddie mac flex modification? - ANSWER to provide an easier, flexible way of helping more borrowers qualify for a loan modification in a changing housing environment what is the benefit of the fannie mae and freddie mac flex modification? - ANSWER provides eligible borrowers an option to resolve delinquency and sustain homeownership by targeting a 20% payment reduction what are the eligibility requirements for a fannie mae or freddie mac flex modification? - ANSWER 1. be 60 days or more delinquent and occupy the property as a primary residence OR 2. be current or less than 60 days delinquent, occupy the property as a primary residence, and be in imminent default AND 3. submit a BRP what does BRP stand for? - ANSWER borrower response package what does a BRP include? - ANSWER 1. completed and signed form 710, uniform borrower assistance form 2. eligible hardship documentation 3. documentation to verify stable income to support a monthly payment 4. imminent default hardship documentation, for borrowers less than 60 days delinquent what are the mortgage loan restrictions on a fannie mae or freddie mac flex modification? - ANSWER 1. must be owned by either of them to qualify for the respective program 2. must have originated at least 12 months prior to loan modification request 3. must not have been modified three or more times previously, regardless of loan modification program or dates what is the primary residence restriction of the fannie mae or freddie mac flex modification? - ANSWER if investment property, it must be more than 60 days delinquent T or F: streamlined eligibility for fannie mae and freddie mac flex modifications apply to borrowers who are 90 days delinquent or more - ANSWER true; they do not need to provide documentation what does RMA stand for? - ANSWER request for mortgage assistance what is an RMA? - ANSWER form that a borrower must complete to be considered for mortgage loan modification options? what forms are needed to request a loan modification? - ANSWER 1. financial documentation 2. RMA 3. 4506-C form what is the 4506-C form? - ANSWER it gives the servicer permission to look at most recent tax returns what information is included in the mortgage assistance application? - ANSWER 1. borrower information 2. property information 3. hardship information 4. borrower income 5. borrower certification and agreement what is the purpose of the 4506-C form? - ANSWER so servicers can verify that fraudulent returns aren't sent in with modification requests why would a loan modification case be escalated? - ANSWER 1. the workout request is denied 2. the workout offered is unaffordable