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HUD Certification Exam/90 Questions and Answers
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HUD Certification Exam/90 Questionsand Answers
Which document is most important when working with a client to develop an
initial budget as part of a Client Action Plan?
Pay stub
Retirement plan statement
List of assets
Current lease - -Pay stub
-A client would like purchase a home within one year. The client is motivated
to increase household income as a way to save for a down payment and
qualify for a loan. Which is the best solution for the client to reach this goal?
Find a second job
Borrow from retirement fund
Sell major assets
Find a temporary job through a staffing service - -Find a second job
-A credit report may contain which information?
The number of accounts in collection status
A history of payments on an electric bill
Income history
Criminal record - -The number of accounts in collection status
-A credit report contains inaccurate information. Which action item should
the counselor include in the Client Action Plan?
-Attach a letter to mortgage applications explaining the inaccuracies.
-Investigate the reasons why the inaccuracies occurred to determine the
responsible party.
-Include a personal consumer statement on the credit report.
-File a dispute with the appropriate credit reporting agency. - -File a dispute
with the appropriate credit reporting agency.
-Six months ago a client left a job as a reporter to start a business in the
retail industry. To prepare to buy a house, the client closed credit card
accounts and has been using savings to pay down credit card debt and
collections. The client has not been able to save much for a down payment
with all the debt payments but knows about an affordable home-ownership
program that only requires a 1% down payment with an FHA loan.
,What might result from the client closing the credit card accounts?
-It decreases credit utilization, causing a negative impact on the credit score.
-It increases credit utilization, causing a negative impact on the credit score.
-It increases credit utilization, causing a positive impact on the credit score.
-It decreases credit utilization, causing a positive impact on the credit score.
- -It decreases credit utilization, causing a positive impact on the credit
score.
-Which action would a client take to improve a credit score?
-Request to expunge public records
-Apply for new credit cards to increase credit
-Cancel all credit cards
-Pay delinquent accounts - -Pay delinquent accounts
-A client does not receive a written monthly statement from the credit card
company. Which credit law could this omission violate?
-Fair Credit Billing Act
-Fair Credit Reporting Act
-Fair Housing Act
-Fair and Accurate Credit Transactions Act - -Fair Credit Billing Act
-A client shopping for a mortgage loan presents a housing counselor with an
offer from a local mortgage lender. The interest rate on the offer is 7.5% for
a 30-year fixed rate mortgage with a 20% down payment required. The
counselor reviews the client file and determines the client's credit score is
725 and the client's total debt-to-income ratio is 20%.
The client asks the housing counselor if the offer is a case of illegal predatory
lending. How should the housing counselor respond?
-"You have been a victim of predatory lending and should file a report with
the Consumer Finance Protection Bureau (CFPB)."
-"The loan seems reasonable. You might do better, but I cannot steer you to
any particular loan originator."
-"I am unable to determine whether the loan is predatory, but I suggest you
shop around with other lending sources."
-"I cannot offer legal advice, but I would not proceed with the loan." - -"I am
unable to determine whether the loan is predatory, but I suggest you shop
around with other lending sources."
-Which action should a counselor recommend a client take first after
discovering identity theft?
, -File for a name change.
-Apply for a new Social Security number.
-File an identity theft report.
-Purchase identity theft protection. - -File an identity theft report.
-In which situation would a client's responsibilities, recurring costs, and
upfront costs be evaluated?
-When considering closing costs
-When choosing a loan officer
-When weighing housing options
-When applying for a loan modification - -When weighing housing options
-A client works 40 hours a week making $15 an hour. What is the highest
monthly mortgage the client can afford based on income if the client secures
a conventional loan?
-$728
-$806
-$936
-$1,118 - -$728
-Which type of government insured loan was created for financing homes in
rural areas?
-VA
-Fannie Mae
-FHA
-USDA - -USDA
-Which type of assistance administered by a public housing authority allows
for location flexibility. A client keeps having budget problems due to
unexpected expenses. Which financial tool would best assist this client to
prepare for unexpected expenses and avoid increasing credit usage?
-Emergency fund
-Line of credit
-Payday loan
-Retirement savings account - -Emergency fund
-A client has a monthly household income of $2,300, monthly debt
payments of $450, and an optimal monthly housing ratio of 32%. What is the
client's optimal monthly housing payment?
-$592
-$736
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