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FREDDIE MAC - CREDIT SMART
EXAM 2026 QUESTIONS AND
ANSWERS| ACE YOUR GRADES.
The contractor asks for money up front and leaves after
completing little or no repair work. - correct answer -Home
Improvement Loan Scam
Someone offers to loan you money for home repairs while you
wait for your insurance money. - correct answer -Post-Disaster
Insurance Scam
Homeowner is charged rent to stay in his/her home with the
promise that he/she can purchase the home back when his/her
financial situation improves. - correct answer -Foreclosure
Rescue Scam
It's important for consumers to be aware of online scams and to
practice good cybersecurity habits. - correct answer -True
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Selling your home for less than what you owe on the mortgage
with the loan servicer writing off the remaining mortgage balance.
- correct answer -Short Sale
If the loan servicer is agreeable, this permits another qualified
buyer to take over your mortgage debt and the mortgage
payments. - correct answer -Assumption
The loan servicer might agree to put the foreclosure on hold to
give you some time to sell your home. - correct answer -Selling
Your Home
The loan servicer accepts the transfer of the title of the home
back to them in exchange for cancellation of your mortgage debt.
- correct answer -Deed in Lieu of Foreclosure
The following are alternatives to foreclosure (select all that apply):
- correct answer ---Reinstatement
--Forbearance
--Loan modification
--Repayment plan
--Refinance
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Homebuyers who don't have a 20% down payment saved might
have the following options: - correct answer -ALL OF THE
BELOW:
(--Adhering to a stricter spending plan, tracking expenses using a
budgeting app, and saving for a down payment
--Looking into low down payment mortgage products, including
conventional Freddie Mac or Fannie Mae products, FHA loans or
other loan products offered by lenders
--Exploring down payment assistance programs in their market
including federal, state and local programs for eligible
homebuyers)
Many lenders require an escrow account to hold funds for
property taxes and property insurance payments. To ensure that
taxes and insurance are paid on time, it's a good idea to ask your
mortgage company to set up an escrow account for this purpose
even if you're not required to have one. - correct answer -True
When determining whether to make a mortgage loan to a
homebuyer, lenders consider the 4 C's of lending: Capacity,
Capital, Credit and Collateral.
FREDDIE MAC - CREDIT SMART
EXAM 2026 QUESTIONS AND
ANSWERS| ACE YOUR GRADES.
The contractor asks for money up front and leaves after
completing little or no repair work. - correct answer -Home
Improvement Loan Scam
Someone offers to loan you money for home repairs while you
wait for your insurance money. - correct answer -Post-Disaster
Insurance Scam
Homeowner is charged rent to stay in his/her home with the
promise that he/she can purchase the home back when his/her
financial situation improves. - correct answer -Foreclosure
Rescue Scam
It's important for consumers to be aware of online scams and to
practice good cybersecurity habits. - correct answer -True
, Page | 2
Selling your home for less than what you owe on the mortgage
with the loan servicer writing off the remaining mortgage balance.
- correct answer -Short Sale
If the loan servicer is agreeable, this permits another qualified
buyer to take over your mortgage debt and the mortgage
payments. - correct answer -Assumption
The loan servicer might agree to put the foreclosure on hold to
give you some time to sell your home. - correct answer -Selling
Your Home
The loan servicer accepts the transfer of the title of the home
back to them in exchange for cancellation of your mortgage debt.
- correct answer -Deed in Lieu of Foreclosure
The following are alternatives to foreclosure (select all that apply):
- correct answer ---Reinstatement
--Forbearance
--Loan modification
--Repayment plan
--Refinance
, Page | 3
Homebuyers who don't have a 20% down payment saved might
have the following options: - correct answer -ALL OF THE
BELOW:
(--Adhering to a stricter spending plan, tracking expenses using a
budgeting app, and saving for a down payment
--Looking into low down payment mortgage products, including
conventional Freddie Mac or Fannie Mae products, FHA loans or
other loan products offered by lenders
--Exploring down payment assistance programs in their market
including federal, state and local programs for eligible
homebuyers)
Many lenders require an escrow account to hold funds for
property taxes and property insurance payments. To ensure that
taxes and insurance are paid on time, it's a good idea to ask your
mortgage company to set up an escrow account for this purpose
even if you're not required to have one. - correct answer -True
When determining whether to make a mortgage loan to a
homebuyer, lenders consider the 4 C's of lending: Capacity,
Capital, Credit and Collateral.
