HUD Certification
Exam Questions
and Complete
Solutions Graded
A+
Denning [Date] [Course title]
,Which document is most important when working with a client to develop an initial budget as part of a
Client Action Plan?
Pay stub
Retirement plan statement
List of assets
Current lease - Answer: Pay stub
A client would like 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
Borrow from retirement fund
Sell major assets
Find a temporary job through a staffing service - Answer: Find a second job
A credit report may contain which information?
The number of accounts in collection status
A history of payments on an electric bill
Income history
Criminal record - Answer: The number of accounts in collection status
A credit report contains inaccurate information. Which action item should the counselor include in the
Client Action Plan?
-Attach a letter to mortgage applications explaining the inaccuracies.
-Investigate the reasons why the inaccuracies occurred to determine the responsible party.
-Include a personal consumer statement on the credit report.
, -File a dispute with the appropriate credit reporting agency. - Answer: File a dispute with the
appropriate credit reporting agency.
Six months ago a client left a job as a reporter to start a business in the retail industry. 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. The client has not been able to save much for a down payment with all the debt
payments but knows about an affordable home-ownership program that only requires a 1% down
payment with an FHA loan.
What might result from the client closing the credit card accounts?
-It decreases credit utilization, causing a negative impact on the credit score.
-It increases credit utilization, causing a negative impact on the credit score.
-It increases credit utilization, causing a positive impact on the credit score.
-It decreases credit utilization, causing a positive impact on the credit score. - Answer: It decreases
credit utilization, causing a positive impact on the credit score.
Which action would a client take to improve a credit score?
-Request to expunge public records
-Apply for new credit cards to increase credit
-Cancel all credit cards
-Pay delinquent accounts - Answer: Pay delinquent accounts
A client does not receive a written monthly statement from the credit card company. Which credit law
could this omission violate?
-Fair Credit Billing Act
-Fair Credit Reporting Act
-Fair Housing Act
-Fair and Accurate Credit Transactions Act - Answer: Fair Credit Billing Act
Exam Questions
and Complete
Solutions Graded
A+
Denning [Date] [Course title]
,Which document is most important when working with a client to develop an initial budget as part of a
Client Action Plan?
Pay stub
Retirement plan statement
List of assets
Current lease - Answer: Pay stub
A client would like 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
Borrow from retirement fund
Sell major assets
Find a temporary job through a staffing service - Answer: Find a second job
A credit report may contain which information?
The number of accounts in collection status
A history of payments on an electric bill
Income history
Criminal record - Answer: The number of accounts in collection status
A credit report contains inaccurate information. Which action item should the counselor include in the
Client Action Plan?
-Attach a letter to mortgage applications explaining the inaccuracies.
-Investigate the reasons why the inaccuracies occurred to determine the responsible party.
-Include a personal consumer statement on the credit report.
, -File a dispute with the appropriate credit reporting agency. - Answer: File a dispute with the
appropriate credit reporting agency.
Six months ago a client left a job as a reporter to start a business in the retail industry. 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. The client has not been able to save much for a down payment with all the debt
payments but knows about an affordable home-ownership program that only requires a 1% down
payment with an FHA loan.
What might result from the client closing the credit card accounts?
-It decreases credit utilization, causing a negative impact on the credit score.
-It increases credit utilization, causing a negative impact on the credit score.
-It increases credit utilization, causing a positive impact on the credit score.
-It decreases credit utilization, causing a positive impact on the credit score. - Answer: It decreases
credit utilization, causing a positive impact on the credit score.
Which action would a client take to improve a credit score?
-Request to expunge public records
-Apply for new credit cards to increase credit
-Cancel all credit cards
-Pay delinquent accounts - Answer: Pay delinquent accounts
A client does not receive a written monthly statement from the credit card company. Which credit law
could this omission violate?
-Fair Credit Billing Act
-Fair Credit Reporting Act
-Fair Housing Act
-Fair and Accurate Credit Transactions Act - Answer: Fair Credit Billing Act
