HUD CERTIFICATION COMPREHENSIVE EXAM UPDATED
QUESTIONS AND ANSWERS GRADED A+
✔✔The client was laid off from her job five months ago. She is three months past due
on her mortgage and is
concerned about losing her home. She is receiving unemployment payments of $1,950
per month and receives Social Security Survivor benefits of $1,400 per month. She
wants to know what her options are. Her mortgage payment is $2,050 per month
including property taxes and insurance. Her debt obligations total is $375. She has
exhausted her reserves.
Which characteristic of this client's situation disqualifies her for the FHA-HAMP Loan
Modification Program? - ✔✔The client is eligible for another FHA loss mitigation option.
NOTE: Since this client is receiving unemployment, she is eligible for the FHA Special
Forbearance - Unemployment Agreement. The FHA-HAMP Loan Modification Program
is only available to clients who are not eligible for any
other loss mitigation program.
✔✔Which is the best option for a client if she cannot sell her home and she does not
want to try to keep it?
A- Deed-in-lieu of foreclosure
B- Walk away from the home
C- Loan modification
D- Forbearance agreement - ✔✔A- Deed-in-lieu of foreclosure
✔✔Which is the most likely consequence of a short sale?
A- The client may need to make arrangements to pay off mortgage deficiency.
B- The forgiven mortgage deficiency may be treated as taxable income.
C- The mortgage deficiency may be added to the future sales price of the home.
D- The mortgage company may sue the homeowner for the deficiency amount owed. -
✔✔B- The forgiven mortgage deficiency may be treated as taxable income.
NOTE: Most short sales will have a deficiency, but in most cases the lender will not
require payment of the remaining balance and can request that the option for a
deficiency judgment be removed. However, the forgiven balance may be treated as
taxable income for the borrower.
✔✔The client is afraid her servicer might begin foreclosure proceedings immediately
and force her out of her home. Which information should the housing counselor
provide?
,A- As long as the client is working with a housing counselor, the servicer cannot file for
foreclosure.
B- A mortgage servicer cannot make a first notice for foreclosure until a borrower is
more than 120 days
delinquent.
C- If the client makes a partial payment, it will delay foreclosure.
D- The client is not yet in default. - ✔✔B- A mortgage servicer cannot make a first notice
for foreclosure until a borrower is more than 120 days delinquent.
✔✔If the client decides to leave the home, which option would most likely require the
least amount of time?
A- Deed-in-lieu
B- Foreclosure
C- Short sale
D- Pre-foreclosure sale - ✔✔A- Deed-in-lieu
If the servicer cooperates, a deed-in-lieu will take the least amount of time. The
foreclosure process can vary from state to state and can take several months to several
years to complete. A short sale is "short" on the principal balance of the loan, though
the timeline for completion is typically not very short. Pre-foreclosure sale means selling
the property prior to foreclosure, which may or may not be a short sale.
Reference: Module 5.3 Disposition Options
Page Number 4 to 6
✔✔The client is also behind on her credit card debt and has only a few job prospects.
She is considering filing for bankruptcy but wants to keep her home. Which advice
should the housing counselor provide?
A- Suggest the client file for a Chapter 13 bankruptcy
B- Suggest the client file for a Chapter 7 bankruptcy
C- Provide the client with the name of a bankruptcy attorney
D- Explore loss mitigation options available - ✔✔D- Explore loss mitigation options
available
✔✔Which 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? - ✔✔Means test
✔✔The client was laid off from her job five months ago. Based on the information
provided, if the client had an FHA-insured mortgage which loss mitigation option
would her servicer likely suggest first? - ✔✔Special Forbearance - Unemployment
Agreement
, ✔✔The client and her housing counselor request an FHA Special Forbearance-
Unemployment Agreement from the client's servicer. Which is a key feature of this type
of agreement?
A- The agreement will expire 60 days after she becomes employed.
B- The client will have to show surplus income over the minimum limit.
C- It will temporarily suspend and/or reduce the client's monthly mortgage payment.
D- The client will have to successfully complete a Trial Payment Plan. - ✔✔C- It will
temporarily suspend and/or reduce the client's monthly mortgage payment
✔✔For which loss mitigation option would this unemployed client be approved if she
has an FHA loan?
A- Standalone Partial Claim
B- Special Forbearance - Unemployment Agreement
C- FHA-HAMP Loan Modification
D- Freddie Mac Flex Modification - ✔✔B- Special Forbearance - Unemployment
Agreement
✔✔Because she has exhausted her reserves the client is concerned about how she will
find a new place to live should she not succeed in her goal of saving her home. Which
information should the housing counselor provide?
A- The client should stop making mortgage payments and save that money for
transition.
B- Most landlords are willing to provide lenient terms to someone who has just lost their
home through
foreclosure.
C- The client's state and/or servicer may have programs to assist with transition costs.
D- Most servicers will allow homeowners 30 days from the date of eviction to transition.
- ✔✔C- The client's state and/or servicer may have programs to assist with transition
cos
✔✔The client finds out her landlord has been granted a writ of possession. Which
advice should the housing
counselor provide to the client?
A- Stay in the unit until client receives a notice to pay or quit
B- Respond to the court within five days to stop the eviction
C- Prepare to move immediately
D- Appeal to the landlord for an extension - ✔✔C- Prepare to move immediately
NOTE: Seventy-two hours after the landlord is granted a writ of possession, they will
have the right to change the locks and have a forcible eviction with the help of law
enforcement. By the time the client receives a writ of possession, she would have
QUESTIONS AND ANSWERS GRADED A+
✔✔The client was laid off from her job five months ago. She is three months past due
on her mortgage and is
concerned about losing her home. She is receiving unemployment payments of $1,950
per month and receives Social Security Survivor benefits of $1,400 per month. She
wants to know what her options are. Her mortgage payment is $2,050 per month
including property taxes and insurance. Her debt obligations total is $375. She has
exhausted her reserves.
Which characteristic of this client's situation disqualifies her for the FHA-HAMP Loan
Modification Program? - ✔✔The client is eligible for another FHA loss mitigation option.
NOTE: Since this client is receiving unemployment, she is eligible for the FHA Special
Forbearance - Unemployment Agreement. The FHA-HAMP Loan Modification Program
is only available to clients who are not eligible for any
other loss mitigation program.
✔✔Which is the best option for a client if she cannot sell her home and she does not
want to try to keep it?
A- Deed-in-lieu of foreclosure
B- Walk away from the home
C- Loan modification
D- Forbearance agreement - ✔✔A- Deed-in-lieu of foreclosure
✔✔Which is the most likely consequence of a short sale?
A- The client may need to make arrangements to pay off mortgage deficiency.
B- The forgiven mortgage deficiency may be treated as taxable income.
C- The mortgage deficiency may be added to the future sales price of the home.
D- The mortgage company may sue the homeowner for the deficiency amount owed. -
✔✔B- The forgiven mortgage deficiency may be treated as taxable income.
NOTE: Most short sales will have a deficiency, but in most cases the lender will not
require payment of the remaining balance and can request that the option for a
deficiency judgment be removed. However, the forgiven balance may be treated as
taxable income for the borrower.
✔✔The client is afraid her servicer might begin foreclosure proceedings immediately
and force her out of her home. Which information should the housing counselor
provide?
,A- As long as the client is working with a housing counselor, the servicer cannot file for
foreclosure.
B- A mortgage servicer cannot make a first notice for foreclosure until a borrower is
more than 120 days
delinquent.
C- If the client makes a partial payment, it will delay foreclosure.
D- The client is not yet in default. - ✔✔B- A mortgage servicer cannot make a first notice
for foreclosure until a borrower is more than 120 days delinquent.
✔✔If the client decides to leave the home, which option would most likely require the
least amount of time?
A- Deed-in-lieu
B- Foreclosure
C- Short sale
D- Pre-foreclosure sale - ✔✔A- Deed-in-lieu
If the servicer cooperates, a deed-in-lieu will take the least amount of time. The
foreclosure process can vary from state to state and can take several months to several
years to complete. A short sale is "short" on the principal balance of the loan, though
the timeline for completion is typically not very short. Pre-foreclosure sale means selling
the property prior to foreclosure, which may or may not be a short sale.
Reference: Module 5.3 Disposition Options
Page Number 4 to 6
✔✔The client is also behind on her credit card debt and has only a few job prospects.
She is considering filing for bankruptcy but wants to keep her home. Which advice
should the housing counselor provide?
A- Suggest the client file for a Chapter 13 bankruptcy
B- Suggest the client file for a Chapter 7 bankruptcy
C- Provide the client with the name of a bankruptcy attorney
D- Explore loss mitigation options available - ✔✔D- Explore loss mitigation options
available
✔✔Which 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? - ✔✔Means test
✔✔The client was laid off from her job five months ago. Based on the information
provided, if the client had an FHA-insured mortgage which loss mitigation option
would her servicer likely suggest first? - ✔✔Special Forbearance - Unemployment
Agreement
, ✔✔The client and her housing counselor request an FHA Special Forbearance-
Unemployment Agreement from the client's servicer. Which is a key feature of this type
of agreement?
A- The agreement will expire 60 days after she becomes employed.
B- The client will have to show surplus income over the minimum limit.
C- It will temporarily suspend and/or reduce the client's monthly mortgage payment.
D- The client will have to successfully complete a Trial Payment Plan. - ✔✔C- It will
temporarily suspend and/or reduce the client's monthly mortgage payment
✔✔For which loss mitigation option would this unemployed client be approved if she
has an FHA loan?
A- Standalone Partial Claim
B- Special Forbearance - Unemployment Agreement
C- FHA-HAMP Loan Modification
D- Freddie Mac Flex Modification - ✔✔B- Special Forbearance - Unemployment
Agreement
✔✔Because she has exhausted her reserves the client is concerned about how she will
find a new place to live should she not succeed in her goal of saving her home. Which
information should the housing counselor provide?
A- The client should stop making mortgage payments and save that money for
transition.
B- Most landlords are willing to provide lenient terms to someone who has just lost their
home through
foreclosure.
C- The client's state and/or servicer may have programs to assist with transition costs.
D- Most servicers will allow homeowners 30 days from the date of eviction to transition.
- ✔✔C- The client's state and/or servicer may have programs to assist with transition
cos
✔✔The client finds out her landlord has been granted a writ of possession. Which
advice should the housing
counselor provide to the client?
A- Stay in the unit until client receives a notice to pay or quit
B- Respond to the court within five days to stop the eviction
C- Prepare to move immediately
D- Appeal to the landlord for an extension - ✔✔C- Prepare to move immediately
NOTE: Seventy-two hours after the landlord is granted a writ of possession, they will
have the right to change the locks and have a forcible eviction with the help of law
enforcement. By the time the client receives a writ of possession, she would have
