Question
nnnnFHA has established certain MPR’s that apply to loans that they insure. MPR is an abbreviation for:
nnnnSelections
nnnnA. Market Price Ratings
nnnnB. Minimum Property Requirements
nnnnC. Minimum Profitability Ratios
nnnnD. Mortgage Progression Times
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Answer: B
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5 Keys Summary
nnnn• MPR is an abbreviation for Minimum Property Requirements.
nnnn• The FHA (Federal Housing Administration) established MPRs as standards that properties must meet to be eligible for FHA mortgage insurance.
nnnn• The purpose of MPRs is to ensure that properties financed with FHA loans are safe, sound, and sanitary.
nnnn• FHA is a federal agency that insures lenders against losses on mortgage loans, rather than making the loans themselves.
nnnn• The specific loan requirements, including MPRs, are typically detailed in a handbook published by the U.S. Department of Housing and Urban Development (HUD), which oversees the FHA.
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