NACA HUD Certification Exam Questions and Answers 100% Correct!

Credit Report - ANSWER-a compilation of data about you that has been gathered by credit reporting agencies or "credit bureaus" Length of Credit History - ANSWER-Makes up 15% of FICO score Type - ANSWER-__ of credit use makes up 10% of FICO score New Credit or Inquiries - ANSWER-Makes up 10% of FICO score Amounts Owed - ANSWER-Makes up 30% of FICO score Payment History - ANSWER-Makes up 35% of FICO score Fair Credit Reporting Act (FCRA) - ANSWER-act that protects privacy of background information and ensures that information supplied is accurate in the files of the nation's credit reporting companies Residential Mortgage Credit Report - ANSWER-a credit report containing information from all three credit bureaus and is used to determine credit worthiness therefore is full verified when a customer applies for a loan and it will affect the credit score Negative Amortization - ANSWER-when the loan principal increases over time even though you are making payments Balloon Payment - ANSWER-a final loan payment that is much larger than the regular monthly payments PITI - ANSWER-Principal, Interest, Taxes, Insurance 4 C's of Credit - ANSWER-Capacity, Capital, Character, Collateral Chapter 7 Bankruptcy - ANSWER-Straight Bankruptcy; most common form for individuals; typically used by people who have no hope of repaying their debt; Truth in Lending Act (TILA) - ANSWER-Requires lenders to provide consumers with loan cost information so that they can comparison shop (to protect consumers against inaccurate and unfair loan billing and credit card practices) Title 6 of the Civil Rights Act of 1964 - ANSWER-no person in the united states shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance. Title 8 of the Civil Rights Act of 1968 - ANSWER-The Fair Housing Act; Executive Order 11063 (This Order signed by JFK on Nov. 20, 1962, "prohibits discrimination in the sale, leasing, rental, or other disposition of properties and facilities owned or operated by the federal government or provided with federal funds." This order banned segregation federally funded housing.) Section 504 of the Rehabilitation Act of 1973 - ANSWER-Extends civil rights to people with disabilities; the first disability civil rights law to be enacted in the U.S; set the stage for the Americans with Disabilities Act. The Age Discrimination Act of 1975 - ANSWER-Prohibits discrimination on the basis of age in pr