HUD Exam Prep Complete Questions & Answers(Latest Update 2024)

% Impact of Account Payment History on Credit Score - ANSWER 35% portion of credit score based on the payment history of accounts, including late payments, delinquencies, judgments, and liens % Impact of Amounts Owed on Accounts on Credit Score - ANSWER 30% portion of score based on the ratio of total credit extended to the amount of credit owed % Impact of Length of Credit History on Credit Score - ANSWER 15% portion of score based don the overall length of credit history in the report, as well as average age of accounts % Impact of Types of Credit Used on Credit Score - ANSWER 10% portion of score based on the variety of accounts % Impact of New Credit on Credit Score - ANSWER 10% portion of score based on the number of recent credit INQUIRIES 1.1.1) All of the following would help a counselor develop a realistic household budget, except: A. Payment information for a paid-off car B. Amount spent on groceries C. Rent payment information D. Monthly cable bill - ANSWER A 1.1.2) All of the following are reasons why it is important for a client to track income and expenses before finalizing a budget, except: A. It helps show clients that they actually spend less on some expenses than they think. B. It helps identify spending habits. C. It helps show clients that their spending and expenses are out of control. D. It helps define realistic and attainable goals and timelines. - ANSWER C 1.1.3) Which of the following is a "want" and not a "need"? A. Health care premium B. Car insurance C. Gym membership D. Rent - ANSWER C 1.1.4) All of the following are effective ways to decrease expenses, except: A. Cancel insurance policy B. Cancel cable service