Housing Counselor Exam - Pre Assessment Questions With Complete Solutions.

Housing Counselor Exam - Pre Assessment Questions With Complete Solutions. Which is an eligibility factor for the Earned Income Tax Credit? Receiving wages Which situation most likely indicates a loan modification scam? The client receives a letter from a company guaranteeing a loan modification Which was instituted by Congress to better protect homebuyers following the most recent housing crisis Consumer Finance Protection Bureau 121 Which is an example of a change enacted by Consumer Finance Protection Bureau (CFPB) that would help a client prepare for the mortgage loan process? Easier-to-use mortgage disclosure forms that clearly outline the terms of a mortgage to the borrower Which initiative encourages recipients of HUD program funding to advocate that lenders operate in underserved areas Affirmatively Furthering Fair Housing Which action taken by a housing counseling agency would affirmatively further fair housing Create an outreach campaign designed to raise awareness about critical housing topics Affirmatively Furthering Fair Housing Affirmatively furthering fair housing focuses on education and prevention, not reacting to violations. The most appropriate activity is to create a targeted outreach campaign. Reporting potential violations is a responsive action, not an affirmative action. Discouraging clients from leasing with certain landlords could create the appearance of steering and should be avoided. Housing counselors should empower clients to recognize potential violations and protect their fair housing rights so they can view properties on their own. Which satisfies a housing counseling agency's requirement to Affirmatively Further Fair Housing Reviewing marketing materials of local mortgage lenders Which Affirmatively Furthering Fair Housing action might benefit a client Conduct educational initiatives to inform people about fair housing obligations Which disposition option typically applies to a manufactured home on leased land when the borrower is in default Replevin Which is the most likely consequence of a short sale The forgiven mortgage deficiency may be treated as taxable income Means Test A means test is a bankruptcy qualification that considers income and equity in assets to determine if a client has the ability to repay part of the debt. Which is the first step in the loss mitigation submission process Determine the reason the client is behind on mortgage payments Which is the best advice a housing counselor should give the client about an emergency preparedness plan Encourage involvement of the entire family Which is an appropriate feature of a safe room Few or no windows Which is an important characteristic of an emergency point of contact when creating an Emergency Preparedness Plan Lives outside the immediate area During a party at the client's apartment, a friend stumbles over a hoodie and falls down the stairs, crashing into the client. The friend breaks his leg and the client drops his cell phone, breaking it. Which feature of renter's insurance is most relevant to this incident Personal liability coverage could protect the client from related legal action Which document should the counselor review with the client to identify spending habits and track expenses Bank statement Which expense is generally considered to be a "want" as opposed to a "need Cable What is the maximum percent of area median income allowable for a household to qualify for a Housing Choice Voucher 50% Which is the maximum recommended front-end ratio (or housing ratio) for renting an apartment 30% How should a client apply for the Housing Choice Voucher Program? Contact the local Public Housing Authority Which website provides information on programs to assist homebuyers with down payment assistance HUD.gov In order to minimize the impact on a client's credit score, what is the maximum time frame within which the client should apply for pre-approval from multiple lenders A 30-day period Which is a responsibility of a housing couselor Educate homebuyers about their rights Which type of loan product can be used to finance the purchase of a manufactured home on leased land FHA Title I Financing options for the purchase of a manufactured home depend on which factor Land property interest Which is a responsibility of a home inspector Evaluate the condition of a home Examine mechanical systems Identify items to be repaired or replaced Which is the best advice that a housing counselor can give the client to protect against identity theft Review credit report at least once per year Which is the best reason that a housing counselor would suggest that a client speak to three to five different lenders before choosing one So the client can compare loan estimates In reviewing a loan estimate, the housing counselor finds fees for services that seem unnecessary. What is the most likely explanation for these fees Predatory lending practices If a client obtains a mortgage of $100,000, typically, how much should he expect to pay for closing costs $4,000 Closing costs range between 3% and 4% on average. Based on a $100,000 loan, the client should expect to pay between $3,000 and $4,000 in closing fees. Which steps should the housing counselor take to assess the client's readiness to purchase a home Assess funds available for upfront costs Calculate back-end ratio (debt-to-income ratio) Determine maximum housing payment Which is the maximum back-end ratio allowable for an FHA loan 43% Which is the upfront mortgage insurance premium (UFMIP) if a client purchases a home with an FHA loan amount of $116,000 $2,030 The up-front mortgage insurance premium (UFMIP) for an FHA loan is 1.75% On which factor is a borrower's annual mortgage insurance premium (MIP) based Current principal balance Which tactic would be most effective to protect the client in the event of an eviction Document communications with the landlord Which task should be included in the Client's Action Plan to aid her in her goal of purchasing a home Increase savings Which would be an advantage of homeownership for this client Build equity The client's loan application was recently denied, and her credit report shows an outstanding debt that was discharged in her Chapter 7 bankrupty filing. Which federal law protects the client in this situation Fair Credit Reporting Act (FCRA) Fair Credit Reporting Act The Fair Credit Reporting Act allows consumers to dispute inaccurate information on their credit reports A tasks would most likely help the client achieve her goal to improve her credit score by at least 60 points over the next 12 months Open new accounts to re-establish credit How long does a bankruptcy have to be discharged before you can apply for a mortgage in order to qualify for a mortgage, the client's Chapter 7 bankruptcy must have been discharged for at least two years How much should a housing counselor recommend the client save in an emergency fund 3 to 6 months of living expenses Affordable Rental Payment An affordable rental payment should be no higher than 30% of client's gross income. Which step would most likely prevent future rental disputes Abide by the lease agreement The client asks the counselor if she should buy a house instead of renting. She has no savings but thinks she can afford a home if the monthly mortgage payment equals her rent payment. Which costs will prevent this client from purchasing a home Closing costs 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 Fair Credit Reporting Act (FCRA) 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? Send a letter to the credit card company disputing the charge 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? Familial status Which advice should the counselor provide to the client, who faces potential eviction from unpaid rent Pay the back-owed rent and provide a list of emergency rental assistance programs The client announces that she plans to file for bankruptcy. Which is the first recommendation a counselor should make to the client? Adjust the budget to find residual income, then negotiate settlements with creditors one at a time. A Korean man and his daughter would like to rent an apartment. Because the man is confined to a wheelchair he needs a single-level unit. After finding an apartment close to his daughter's school that suits his needs, he submits an application and is approved to rent the unit. However, when he arrives to meet the landlord and sign the lease the landlord refuses to conduct business with him. The landlord claims that the man and his daughter are misrepresenting their identities; the landlord contends that the man he spoke to over the phone was not in a wheelchair. If the man decided to file a fair housing complaint, which piece of information would be most relevant to the description of the alleged violation The client's use of a wheelchair This client tells this story 18 months after it occurred. He was able to find another unit to rent but the experience is still embarrassing to him and he worries that the landlord will do it to someone else. Which is the best advice that a housing counselor can offer