HUD Practice Exam Questions And Answers
, HUD Practice Exam Questions And Answers
1) Which document is most important when working with a client to develop an
initialbudget as part of a Client Action Plan? -Pay stub
2) A client would like to 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 job
3) A credit report may contain which information? # of accounts in collection status
4) A credit report contains inaccurate information. Which action item should the
counselor include in the Client Action Plan?-
File a dispute with the appropriate credit reporting agency
5) 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. What might result from the client
closing the credit card accounts?
-It increases credit utilization, causing a negative impact on credit score
6) Which action would a client take to improve a credit score? -Pay
delinquent accounts
...
7) A client does not receive a written monthly statement from the credit card
company.Which credit law could this omission violate?- FCBA
8) 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?
-I am unable to determine whether the loan is predatory but i suggest you shop
around with other lending sources
9) Which action should a counselor recommend a client take first after
discovering identity theft? -File an identity theft report
10) In which situation would a client's responsibilities, recurring costs, and upfront
costsbe evaluated? -When weighing housing options
11) A client works 40 hours a week making $15 an hour. What is the highest
monthlymortgage the client can afford based on income if the client secures a
conventionalloan? -$728 (Front End Ratio Formula Conventional = <28% ; $15*40*52/12 *28%)
12) Which type of government insured loan was created for financing homes in rural
, HUD Practice Exam Questions And Answers
1) Which document is most important when working with a client to develop an
initialbudget as part of a Client Action Plan? -Pay stub
2) A client would like to 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 job
3) A credit report may contain which information? # of accounts in collection status
4) A credit report contains inaccurate information. Which action item should the
counselor include in the Client Action Plan?-
File a dispute with the appropriate credit reporting agency
5) 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. What might result from the client
closing the credit card accounts?
-It increases credit utilization, causing a negative impact on credit score
6) Which action would a client take to improve a credit score? -Pay
delinquent accounts
...
7) A client does not receive a written monthly statement from the credit card
company.Which credit law could this omission violate?- FCBA
8) 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?
-I am unable to determine whether the loan is predatory but i suggest you shop
around with other lending sources
9) Which action should a counselor recommend a client take first after
discovering identity theft? -File an identity theft report
10) In which situation would a client's responsibilities, recurring costs, and upfront
costsbe evaluated? -When weighing housing options
11) A client works 40 hours a week making $15 an hour. What is the highest
monthlymortgage the client can afford based on income if the client secures a
conventionalloan? -$728 (Front End Ratio Formula Conventional = <28% ; $15*40*52/12 *28%)
12) Which type of government insured loan was created for financing homes in rural
