HUD Practice Test and Correct Answers.

Which action would a client take to improve a credit score?Pay delinquent accountsA client does not receive a written monthly statement from the credit card company. Which credit lawcould this omission violate?Fair Credit Billing ActA client shopping for a mortgage loan presents a housing counselor with an offer from a local mortgagelender. The interest rate on the offer is 7.5% for a 30-year fixed rate mortgage with a 20% downpayment required. The counselor reviews the client file and determines the client's credit score is 725and the client's total debt-to-income ratio is 20%."I am unable to determine whether the loan is predatory, but I suggest you shop around with otherlending sources."Which action should a counselor recommend a client take first after discovering identity theft?File an identity theft reportIn which situation would a client's responsibilities, recurring costs, and upfront costs be evaluated?When weighing housing optionsA client works 40 hours a week making $15 an hour. What is the highest monthly mortgage the clientcan afford based on income if the client secures a conventional loan?$728 Which type of government insured loan was created for financing homes in rural areas?USDAA client keeps having budget problems due to unexpected expenses. Which financial tool would bestassist this client to prepare for unexpected expenses and avoid increasing credit usage?Emergency FundsA client has a monthly household income of $2,300, monthly debt payments of $450, and an optimalmonthly housing ratio of 32%. What is the client's optimal monthly housing payment?$736Use Front-End RatioWhat is the back-end ratio for a client with a monthly housing expense of $1,250, a monthly total of $88in other consumer debt payments, and a gross household income of $4,460 per month (rounded to thenearest whole percent)?30%A client earns a salary of $45,000 at a job held for three years. The client has credit card bills, studentloans, and a car loan totaling $500 per month. The client has already saved $3,500 for a down paymentand is using an FHA Energy Efficient Mortgage (EEM). If the client wants to make the minimum downpayment for a home priced at $150,000, how much more does the client need to save?$1,750Under which condition would most down payment assistance programs approve a waiver of thehomeownership education requirement?Most will not waive the homeownership education requirement.