HUD CERTIFICATION CORE REVIEW ANSWERS AND
QUESTIONS SURE A+
✔✔The client has no savings but thinks she can afford a home if the monthly mortgage
payment equals her rental payment. Which costs will prevent this client from purchasing
a home?
A- Property maintenance expenses
B- Principal, interest, taxes, insurance, and association fees (PITIA)
C- Pet deposit for pet owners
D- Closing costs - ✔✔D- Closing costs
Closing costs average between 3% to 4% of the home purchase price based on a
variety of factors and may be higher or lower. It is important for the client to understand
that this may be a major cost when purchasing a home, and that having no savings to
use will prevent her from purchasing. It also helps the client understand the importance
of
identifying all costs and not just comparing monthly payment amounts. A pet deposit is
an expense, but is only a rental expense. The property maintenance expense will apply
only after she purchases the home.
Reference: Module 2.1 Renting vs. Buying
✔✔The client tells her housing counselor that her employer has accessed her credit
report without
her consent. Which law protects the client from this action?
A- Fair Credit Reporting Act (FCRA)
B- Fair Credit Billing Act (FCBA)
C- Fair Labor Standards Act (FLSA)
D- Fair and Accurate Credit Transactions Act (FACTA) - ✔✔A- Fair Credit Reporting Act
(FCRA)
NOTE: An employer may not access an employee's credit file without his or her consent
per the
, Fair Credit Reporting Act. The Fair and Accurate Credit Transactions Act and the Fair
Credit Billing Act protect consumers in other ways. The Fair Labor Standards Act
protects consumers with respect to other workplace issues but does not address
accessing a credit report without consent.
Reference: Module 1.2 Credit
✔✔Which is the next step the client should take if she calls her credit card company to
dispute a charge, and the company refuses to resolve the issue because the charge
was made outside of her state?
A- Send a letter to the credit card company disputing the charge
B- Ignore the charge
C- Pay the charge
D- File a complaint with the Consumer Finance Protection Bureau (CFPB) - ✔✔D- File a
complaint with the Consumer Finance Protection Bureau (CFPB)
NOTE: Under the Fair Credit Billing Act, credit card companies must respond to a
written dispute within 30 days of receiving it, so the client's next step is to send a letter
to the credit card company to dispute the charge within 60 days of receipt of the
erroneous credit card statement. If the company does not respond, the client should file
a complaint with the Consumer Finance Protection Bureau (CFPB). Paying the charge
would not be to her financial benefit, and ignoring the charge could affect her credit.
Reference: Module 1.2 Credit
✔✔Which class under the Fair Housing Act provides protection for the client if her
landlord tells her she needs to move to a smaller apartment, on a lower level, because
her neighbors have complained about her children?
A- Familial status
B- There is no fair housing violation
C- Sex
D- National origin - ✔✔A- Familial status
✔✔Which advice should the counselor provide to the client, who faces potential eviction
from
unpaid rent?
A- Prepare for eviction by packing her things and provide a list of emergency shelters
B- Seek legal aid services so her rental payments can be held in escrow until the
repairs are made
C- Seek legal aid services to counter sue the landlord for not making repairs to the
dishwasher
D- Pay the back-owed rent and provide a list of emergency rental assistance programs -
✔✔D- Pay the back-owed rent and provide a list of emergency rental assistance
programs
QUESTIONS SURE A+
✔✔The client has no savings but thinks she can afford a home if the monthly mortgage
payment equals her rental payment. Which costs will prevent this client from purchasing
a home?
A- Property maintenance expenses
B- Principal, interest, taxes, insurance, and association fees (PITIA)
C- Pet deposit for pet owners
D- Closing costs - ✔✔D- Closing costs
Closing costs average between 3% to 4% of the home purchase price based on a
variety of factors and may be higher or lower. It is important for the client to understand
that this may be a major cost when purchasing a home, and that having no savings to
use will prevent her from purchasing. It also helps the client understand the importance
of
identifying all costs and not just comparing monthly payment amounts. A pet deposit is
an expense, but is only a rental expense. The property maintenance expense will apply
only after she purchases the home.
Reference: Module 2.1 Renting vs. Buying
✔✔The client tells her housing counselor that her employer has accessed her credit
report without
her consent. Which law protects the client from this action?
A- Fair Credit Reporting Act (FCRA)
B- Fair Credit Billing Act (FCBA)
C- Fair Labor Standards Act (FLSA)
D- Fair and Accurate Credit Transactions Act (FACTA) - ✔✔A- Fair Credit Reporting Act
(FCRA)
NOTE: An employer may not access an employee's credit file without his or her consent
per the
, Fair Credit Reporting Act. The Fair and Accurate Credit Transactions Act and the Fair
Credit Billing Act protect consumers in other ways. The Fair Labor Standards Act
protects consumers with respect to other workplace issues but does not address
accessing a credit report without consent.
Reference: Module 1.2 Credit
✔✔Which is the next step the client should take if she calls her credit card company to
dispute a charge, and the company refuses to resolve the issue because the charge
was made outside of her state?
A- Send a letter to the credit card company disputing the charge
B- Ignore the charge
C- Pay the charge
D- File a complaint with the Consumer Finance Protection Bureau (CFPB) - ✔✔D- File a
complaint with the Consumer Finance Protection Bureau (CFPB)
NOTE: Under the Fair Credit Billing Act, credit card companies must respond to a
written dispute within 30 days of receiving it, so the client's next step is to send a letter
to the credit card company to dispute the charge within 60 days of receipt of the
erroneous credit card statement. If the company does not respond, the client should file
a complaint with the Consumer Finance Protection Bureau (CFPB). Paying the charge
would not be to her financial benefit, and ignoring the charge could affect her credit.
Reference: Module 1.2 Credit
✔✔Which class under the Fair Housing Act provides protection for the client if her
landlord tells her she needs to move to a smaller apartment, on a lower level, because
her neighbors have complained about her children?
A- Familial status
B- There is no fair housing violation
C- Sex
D- National origin - ✔✔A- Familial status
✔✔Which advice should the counselor provide to the client, who faces potential eviction
from
unpaid rent?
A- Prepare for eviction by packing her things and provide a list of emergency shelters
B- Seek legal aid services so her rental payments can be held in escrow until the
repairs are made
C- Seek legal aid services to counter sue the landlord for not making repairs to the
dishwasher
D- Pay the back-owed rent and provide a list of emergency rental assistance programs -
✔✔D- Pay the back-owed rent and provide a list of emergency rental assistance
programs
