HUD Exam Prep 2023 update with 100% complete solutions

% Impact of Account Payment History on Credit Score 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 30% portion of score based on the ratio of total credit extended to the amount of credit owed 00:02 01:22 % Impact of Length of Credit History on Credit Score 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 10% portion of score based on the variety of accounts % Impact of New Credit on Credit Score 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 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. 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 C 1.1.4) All of the following are effective ways to decrease expenses, except: A. Cancel insurance policy B. Cancel cable service C. Stick to a shopping list D. Conserve energy in the home A 1.1.5) All of the following are effective strategies to increase income, except: A. Work over time B. Teach yoga C. Find a second job D. Factor in an anticipated raise D 1.1.6) Rebecca's next appointment is with Ray, a client who recently started a new job and wants to buy a car to cut down on his commute. Rebecca reviews documents that Ray brought to the counseling session and determines that Ray makes about $1,900 each month after taxes. He pays his bills every month and covers his other expenses, but he never has any money left for savings. Identify which information is used in determining a budget, and which information is not. A. Pay Stub B. Bank Statements C. Utility Bills D. Social Security Award Letter E. Annual Bonus F. Stock Dividends G. Employer Reimbursements H. Credit Score Used to determine budget: A, B, C, D Not used to determine budget: E, F, G, H