HUD Housing Counseling Exam Questions & Answers 2023/2024
Rental Obstacle + Solutions: Low Income - ANSWER--Some Renters reject people whose Rent would be more than 30% of GMI
-Solutions
-Apply for Housing Assistance
-Expand housing search areas
-Get a roommate
-Move in w/family or friends...
HUD Housing Counseling Exam Questions & Answers 2023/2024
Rental Obstacle + Solutions: Low Income - ANSWER--Some Renters reject people whose Rent would be more than 30% of GMI
-Solutions
-Apply for Housing Assistance -Expand housing search areas
-Get a roommate
-Move in w/family or friends
Strategies for decreasing expenses and debt - ANSWER-Prioritize "needs over "wants"
-reduce or eliminate "wants"
-cancel or downgrade services(e.g. cable, telephone)
-limit miscellaneous spending
- stick to a shopping list
- pay off a loan or credit card
- move to more affordable housing - change insurance coverage to lower premiums
Fair Credit Reporting Act (FCRA) - ANSWER--Right to know what is your file
-Right to dispute incomplete or inaccurate information
- Access to your file is limited only to people w/valid need (i.e, creditor, insurer)
-You may seek damages from violators (sue)
- States have their own rules which additionally project
What documents to use when tracking income - ANSWER--Paychecks, direct deposits slips
- If self-employed, income + expenses sheet
- Additional income checks or cash - Government benefit letters
Site to obtain free credit report - ANSWER-www.annualcreditreport.com
Chapter 13 bankruptcy - ANSWER-Allows individuals w/regular income to develop a plan to repay all or part of their debts over 3 to 5 years can stop foreclose sure proceedings + may delinquent mortgage payments over time
Steps to take if victim of identity theft - ANSWER--Place a fraud alert w/the credit reporting agencies
- order credit reports to review + identify inaccuracies
- create an identify theft report obtain ID theft affidavit from the FTC - File a police report
Fair and Accurate credit Transcription Act (FACTA) - ANSWER--Right to free annual credit report
- Right to place a fraud alert on your credit file
- Receipts may not include entirety of credit card #s
Four Steps of Asset building - ANSWER-1.Chose the right bank or credit union account
2. Build savings for emergencies + Large purchase 3. Invest for retirement 4. Take advantage of tax credits
Fair credit billing Act (FCBA) - ANSWER--You can dispute billing errors associated w/credit card account
- Must be billed in a timely manner
% of factors how they affect credit score - ANSWER-35% account history
30% amounts owed 15% length of credit history
10% new credit 10% types of credit used Credit reporting agencies on FICO Score - ANSWER--EQUIFAX - EXPERIAN - TRANS UNION
FICO Score - ANSWER--Credit scores often referred to as
= Fair Isaac Corporation
Range:300-850
Means test - ANSWER-A bankruptcy qualification that considers income + equity in assets to determine if
a client has the ability to repay part of the debt
How to fix: Credit Card maxed / too much debt - ANSWER--Pay down debt + keep balances low
- Pay more than minimum
- know the balance - check statements
How to fix: Delinquencies / collections / Judgments - ANSWER-Get current + pay on time moving forward
- sett up payments reminders
- adjust budget
Factors in determining credit score - ANSWER--Payments History
- Capacity used
- Length of credit history
- Type of credit used
- New credit
Inquires - ANSWER-Request initiated by a company or person for a consumer's credit profile information
How to fix: Incorrect information on a credit report - ANSWER-Dispute inaccuracies: *Notify credit reporting agencies of inaccuracies + provide supporting documentation * keep records of dispute documentation
Steps in creating a budget - ANSWER-1. Help client identify short + long-term goals
2. Track income
3. Track expenses
4. Adjust goals + budget *increase income *decrease expenses + debt %.
5. Create client action plan
Section of Credit Report: Public Records - ANSWER-Items that are listed in the public record, including -
bankruptcy
- judgments
-tax liens
- wage garnishments
Section of Credit Report: Personal information - ANSWER-Consumer identification information, including:
-Name
- Social Security number
- Addresses
-Phone #
- Employer's
Section of Credit Report: Account / Trade line information - ANSWER-Info about each consumer credit account, including:
- payment history
- account dates
- credit limit
- balances owed
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Bensuda. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
