A lender may become a PRP ______________.

A lender may become a PRP ______________.

• A. As a tenant with the lease.
• B. As an owner upon foreclosure.
• C. By paying a fee.
• D. As a guarantor on the loan.

Answer: (B)

PRP status is tied to ownership of the property. A lender may become PRP when they own the property—most commonly after foreclosure, when title passes to the lender. As the owner, the lender assumes the property’s responsibilities and any program-specific duties that apply to owners. Being a tenant means they don’t own the property, so PRP isn’t triggered. Paying a fee or acting as a guarantor do not transfer ownership or create the ownership-based responsibilities that PRP requires.

PRP status is tied to ownership of the property. A lender may become PRP when they own the property—most commonly after foreclosure, when title passes to the lender. As the owner, the lender assumes the property’s responsibilities and any program-specific duties that apply to owners. Being a tenant means they don’t own the property, so PRP isn’t triggered. Paying a fee or acting as a guarantor do not transfer ownership or create the ownership-based responsibilities that PRP requires.