DRIVERS ED FINAL (MVA) FINAL TEST
2026 QUESTIONS WITH CORRECT
ANSWERS GRADED A+
◍ Which document is most important when working with a client to develop
an initial budget as part of a Client Action Plan?Pay stubRetirement plan
statementList of assetsCurrent lease.
Answer: Pay stub
◍ Conventional Loan.
Answer: Front end 28%Back end 36% can go up to 45% to 50%(debt to
income), backed by private lenders. AKA prime loans. Good credit, 20%
down payment. May have interest only terms
◍ 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 jobBorrow from retirement fundSell major
assetsFind a temporary job through a staffing service.
Answer: Find a second job
◍ FHA.
Answer: Front end 31%Back end 43%Limited funds, bad credit, bankruptcy,
high debt to income ratio.
◍ EEM (Energy) FHA.
Answer: Front end 33%Back end 45%
◍ VA.
Answer: 41%
◍ USDA.
, Answer: Front End 29%Back End 41%, low-to-moderate income, must live
rural area, no down payment, competitive rates. Bellow 115% median
income. Loan term 33 to 38 yrs
◍ A credit report may contain which information?The number of accounts in
collection statusA history of payments on an electric billIncome
historyCriminal record.
Answer: The number of accounts in collection status
◍ Equal Credit Opportunity Act (ECOA).
Answer: A federal act, which prohibits discrimination by lenders on the
basis of sex or marital status in any aspect of a credit transaction.
◍ 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..
Answer: 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..
Answer: 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.
Answer: Pay delinquent accounts
◍ Front end Ratio.
Answer: PITIA/ Gross Income
◍ Within three days of receiving a loan application, lenders are required to
supply the client with.
Answer: Loan Estimate
◍ How may years at a job to show employment stability?.
Answer: At least 2 years
◍ 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.
Answer: 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.".
Answer: "I am unable to determine whether the loan is predatory, but I
suggest you shop around with other lending sources."
2026 QUESTIONS WITH CORRECT
ANSWERS GRADED A+
◍ Which document is most important when working with a client to develop
an initial budget as part of a Client Action Plan?Pay stubRetirement plan
statementList of assetsCurrent lease.
Answer: Pay stub
◍ Conventional Loan.
Answer: Front end 28%Back end 36% can go up to 45% to 50%(debt to
income), backed by private lenders. AKA prime loans. Good credit, 20%
down payment. May have interest only terms
◍ 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 jobBorrow from retirement fundSell major
assetsFind a temporary job through a staffing service.
Answer: Find a second job
◍ FHA.
Answer: Front end 31%Back end 43%Limited funds, bad credit, bankruptcy,
high debt to income ratio.
◍ EEM (Energy) FHA.
Answer: Front end 33%Back end 45%
◍ VA.
Answer: 41%
◍ USDA.
, Answer: Front End 29%Back End 41%, low-to-moderate income, must live
rural area, no down payment, competitive rates. Bellow 115% median
income. Loan term 33 to 38 yrs
◍ A credit report may contain which information?The number of accounts in
collection statusA history of payments on an electric billIncome
historyCriminal record.
Answer: The number of accounts in collection status
◍ Equal Credit Opportunity Act (ECOA).
Answer: A federal act, which prohibits discrimination by lenders on the
basis of sex or marital status in any aspect of a credit transaction.
◍ 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..
Answer: 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..
Answer: 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.
Answer: Pay delinquent accounts
◍ Front end Ratio.
Answer: PITIA/ Gross Income
◍ Within three days of receiving a loan application, lenders are required to
supply the client with.
Answer: Loan Estimate
◍ How may years at a job to show employment stability?.
Answer: At least 2 years
◍ 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.
Answer: 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.".
Answer: "I am unable to determine whether the loan is predatory, but I
suggest you shop around with other lending sources."
