HUD Exam Prep ALL MODULES 2025
Questions and Answers 2025 - 2026)79
Client Action Plan - ANSWERS-~Client's housing goals + counselor's action steps
Goal of Budget (2) - ANSWERS-~Track income and expenses
~help clients achieve short and long term financial goals
What should you use to track income when creating a budget? (3) - ANSWERS-~Regular
salary/temporary jobs - paystubs
~Public assistance - award letters
~Self-employed - P & L statements
What should you use to track expenses when creating a budget? (4) - ANSWERS-~All bills -
Utility, insurance, and other bills
~All fixed monthly expenses
~All cash receipts
~Bank statements- Credit card statements
How to increase income (5) - ANSWERS-~Work overtime
~Get another job
~Sell items, etc.
~consider community/public resources
~take advantage of tax credits
,How to decrease expenses (4) - ANSWERS-~Prioritize needs over wants
~Cancel or downgrade services
~Reduce debt
~Stick to shopping list
Parts of credit report (5) - ANSWERS-~Personal Info
~Account info
~Public Records
~Inquiries
~Consumer Rights
Collections Definition - ANSWERS-An account in default with an original creditor and sold to a
third-party debt collector that will continue attempts to collect past due dates
Charge off account definition - ANSWERS-An accounting term which means that the creditor
considers a debt uncollectable
Impacts on Credit Report (5) w/ percents - ANSWERS-~Payment history/account history - 35%
~Capacity used/Amount owed -30%
~Length of credit history - 15%
~Type of credit used - 10%
~New Credit - 10%
FICO credit score range - ANSWERS-300-850
Higher score = less risk
Three credit reporting agencies - ANSWERS-Equifax, Experian, TransUnion
,What do credit bureaus do? - ANSWERS-collect, store, and provide credit information
how to improve your credit score? (7) - ANSWERS-~pay bills on time
~pay more than minimum payment
~pay past due amounts in full
~do not "max" out any credit cards -> strive for 30% or better credit utilization ratio
~Report incorrect info
~Open secured credit card or other line of credit -> if no credit, poor credit, or limited credit
~ don't close out old accounts that contribute to a long credit history
Federally authorized source for free credit report website - ANSWERS-annualcreditreport.com
FCRA (5) - ANSWERS-~ Fair Credit Reporting Act
1. Right to your file
2.Right to dispute inaccurate info (removed or corrected in 30 days & can't report anything
older than 7 yrs old [10yrs for bankruptcies])
3.Access to file is limited
4.Right to sue violators for damages
5.Additional states' rights
FACTA (3) - ANSWERS-~ Fair and Accurate Credit Transactions Act; combat identity theft and
fraud
1. Free annual credit report
2. Right to place a fraud alert on your file (90days)
3. Truncate credit card numbers
, FCBA (2) - ANSWERS-~Fair Credit Billing Act
1. Dispute billing errors (30 days to acknowledge and 90 to investigate dispute)
2. Must be billed in a timely manner (at least 14 days before payment is due)
Steps to asset building (4) - ANSWERS-1. Choose the right bank or credit union account
2. Build savings for emergencies and large purchases
3. Invest for retirement
4. take advantage of tax credits
Bank service fees(4) - ANSWERS-~Account maintenance
~wire transfer
~check purchase
~money order/cashier's check
Bank negligence fees (4) - ANSWERS-~overdraft
~overdraft protection transfer
~stop payment
~ non-sufficient funds (NSF)/returned items- due to lack of funds
Common Access Fees (4) - ANSWERS-~Non-network ATM is used
~online banking
~live customer service
~ATM transfer limit/check writing limit fee
Emergency Fund uses and how to build one - ANSWERS-3-6 months of regular living expenses
~ use liquid assets
Questions and Answers 2025 - 2026)79
Client Action Plan - ANSWERS-~Client's housing goals + counselor's action steps
Goal of Budget (2) - ANSWERS-~Track income and expenses
~help clients achieve short and long term financial goals
What should you use to track income when creating a budget? (3) - ANSWERS-~Regular
salary/temporary jobs - paystubs
~Public assistance - award letters
~Self-employed - P & L statements
What should you use to track expenses when creating a budget? (4) - ANSWERS-~All bills -
Utility, insurance, and other bills
~All fixed monthly expenses
~All cash receipts
~Bank statements- Credit card statements
How to increase income (5) - ANSWERS-~Work overtime
~Get another job
~Sell items, etc.
~consider community/public resources
~take advantage of tax credits
,How to decrease expenses (4) - ANSWERS-~Prioritize needs over wants
~Cancel or downgrade services
~Reduce debt
~Stick to shopping list
Parts of credit report (5) - ANSWERS-~Personal Info
~Account info
~Public Records
~Inquiries
~Consumer Rights
Collections Definition - ANSWERS-An account in default with an original creditor and sold to a
third-party debt collector that will continue attempts to collect past due dates
Charge off account definition - ANSWERS-An accounting term which means that the creditor
considers a debt uncollectable
Impacts on Credit Report (5) w/ percents - ANSWERS-~Payment history/account history - 35%
~Capacity used/Amount owed -30%
~Length of credit history - 15%
~Type of credit used - 10%
~New Credit - 10%
FICO credit score range - ANSWERS-300-850
Higher score = less risk
Three credit reporting agencies - ANSWERS-Equifax, Experian, TransUnion
,What do credit bureaus do? - ANSWERS-collect, store, and provide credit information
how to improve your credit score? (7) - ANSWERS-~pay bills on time
~pay more than minimum payment
~pay past due amounts in full
~do not "max" out any credit cards -> strive for 30% or better credit utilization ratio
~Report incorrect info
~Open secured credit card or other line of credit -> if no credit, poor credit, or limited credit
~ don't close out old accounts that contribute to a long credit history
Federally authorized source for free credit report website - ANSWERS-annualcreditreport.com
FCRA (5) - ANSWERS-~ Fair Credit Reporting Act
1. Right to your file
2.Right to dispute inaccurate info (removed or corrected in 30 days & can't report anything
older than 7 yrs old [10yrs for bankruptcies])
3.Access to file is limited
4.Right to sue violators for damages
5.Additional states' rights
FACTA (3) - ANSWERS-~ Fair and Accurate Credit Transactions Act; combat identity theft and
fraud
1. Free annual credit report
2. Right to place a fraud alert on your file (90days)
3. Truncate credit card numbers
, FCBA (2) - ANSWERS-~Fair Credit Billing Act
1. Dispute billing errors (30 days to acknowledge and 90 to investigate dispute)
2. Must be billed in a timely manner (at least 14 days before payment is due)
Steps to asset building (4) - ANSWERS-1. Choose the right bank or credit union account
2. Build savings for emergencies and large purchases
3. Invest for retirement
4. take advantage of tax credits
Bank service fees(4) - ANSWERS-~Account maintenance
~wire transfer
~check purchase
~money order/cashier's check
Bank negligence fees (4) - ANSWERS-~overdraft
~overdraft protection transfer
~stop payment
~ non-sufficient funds (NSF)/returned items- due to lack of funds
Common Access Fees (4) - ANSWERS-~Non-network ATM is used
~online banking
~live customer service
~ATM transfer limit/check writing limit fee
Emergency Fund uses and how to build one - ANSWERS-3-6 months of regular living expenses
~ use liquid assets
