Risk Evaluation & Rating (201)

When you think of HUD what one word comes to mind?

If you could have a mythical creature for a pet which would you choose?

• Kraken

• Unicorn

• Gnome

• Dragon

List an indicator or score that may identify Risk

What are the steps included in SPICE?

• Classify

• Pioritize

• Score

• Execute

• Investigate

What is a step and AE/RS can take to mitigate a project's physical health issues?

What are the two major risk factors at this property?

• Loan Factors

• Market Factors

• Financial Factors

• Management and Qualitative Factors

• Loss of Section 8 subsidy/Preservation

What actions can you take to investigate the root cause?

• Request Monthly Accounting Reports (MARS) Examine Financial Statements

• Request a follow-up inspection

• Schedule meeting with the owner to discuss symptoms

• Review MOR reports for repeated deficiencies or conduct a desk review

• All of the Above

What warning sign(s) may result in mortgage default.

• High mortgage payments or High unpaid principal balance (UPB)

• Local economy is declining

• Low reserve for replacement funds

• All of the above