HUD CERTIFICATION UPDATED COMPREHENSIVE
EXAM QUESTIONS AND ANSWERS SURE A+
✔✔Pre-Payment Penalty - ✔✔A provision in some loans that charges a fee to a
borrower who makes mortgage payments ahead of schedule.
✔✔Equal Credit Opportunity Act (ECOA) - ✔✔Requires lenders to make credit available
equally without discrimination based on race, color, religion, national origin, age, sex,
marital status, or receipt of income form public assistance programs
✔✔Real Estate Settlement Procedures Act (RESPA) - ✔✔Prohibits certain abusive
practices that increase the cost of settlement services. Requires mortgage transaction
disclosures that describe closing costs, lender servicing and escrow account practices,
and business relationships
✔✔Truth in Lending Act (TILA) - ✔✔Requires lenders disclose important information to
protect consumers against
inaccurate and unfair loan billing and credit card practices, it requires lenders to provide
consumers with loan cost information so that they can comparison shop.
✔✔Know Before you Owe (TRID) - ✔✔requires easier to use mortgage disclosure forms
that clearly outline the terms of the mortgage to the borrower and provide detailed
explanations about how form should be completed and used.
✔✔The Know Before you Owe rule combined the Good Faith Estimate and the Truth in
Lending disclosure and became what document? - ✔✔Loan Estimate
✔✔The Know Before you Owe rule combined the HUD-1 and the final TIL disclosure
became what document? - ✔✔Closing Disclosure
, ✔✔Loan Estimate - ✔✔Designed to help consumers understand the key features,
costs, and risks of the mortgage loan for which they are applying, must be provided to
consumers no later than three business days after they submit a loan application
✔✔Closing Disclosure - ✔✔Designed to help consumers understand all of the costs of
the transaction, must be provided to consumers at least three business days before
closing.
✔✔Home Ownership and Equity Protections Act (HOEPA) - ✔✔Federal law enforcing
special disclosure requirements and restrictions on terms for loans that meet high-cost
mortgage tests.
✔✔What is the biggest factor in determining the cost of your insurance? - ✔✔Location
of your home
✔✔What item is critical to consider when working with a client to prepare a household
system maintenance plan? - ✔✔Target Replacement Date
✔✔When preparing a emergency preparedness plan, where is the best location for
meeting point? - ✔✔A location outside of the neighborhood, preferably a place where
your family can live temporarily.
✔✔Home Equity Loan - ✔✔Provides a lump sum of money for home improvements -
often referred to as a second mortgage
✔✔Home Equity Line of Credit (HELOC) - ✔✔A line of credit from which you can borrow
at any time during the draw period, up to your credit limit.
✔✔FHA 203k Loan - ✔✔A loan insured by FHA to provide you with an initial loan for
purchasing a home as well as funding for home improvement.
✔✔Streamline 203k Loan - ✔✔Permits homebuyers and homeowners to finance up to
$35K into their mortgage to repair, improve, or upgrade their home.
✔✔Title 1 Loan - ✔✔A loan insured by FHA that may be used for alterations, repairs,
and site improvements on single family homes and for alterations and repairs on
multifamily homes.
✔✔Energy Efficient Mortgage (EEM) - ✔✔Assists individuals to purchase an energy
efficient home or refinance a home to make energy efficient improvements
✔✔HELOC - ✔✔Best Improvement loan: A client's home improvement plan consists of
multiple expenses that may be paid over an extended period of time.
EXAM QUESTIONS AND ANSWERS SURE A+
✔✔Pre-Payment Penalty - ✔✔A provision in some loans that charges a fee to a
borrower who makes mortgage payments ahead of schedule.
✔✔Equal Credit Opportunity Act (ECOA) - ✔✔Requires lenders to make credit available
equally without discrimination based on race, color, religion, national origin, age, sex,
marital status, or receipt of income form public assistance programs
✔✔Real Estate Settlement Procedures Act (RESPA) - ✔✔Prohibits certain abusive
practices that increase the cost of settlement services. Requires mortgage transaction
disclosures that describe closing costs, lender servicing and escrow account practices,
and business relationships
✔✔Truth in Lending Act (TILA) - ✔✔Requires lenders disclose important information to
protect consumers against
inaccurate and unfair loan billing and credit card practices, it requires lenders to provide
consumers with loan cost information so that they can comparison shop.
✔✔Know Before you Owe (TRID) - ✔✔requires easier to use mortgage disclosure forms
that clearly outline the terms of the mortgage to the borrower and provide detailed
explanations about how form should be completed and used.
✔✔The Know Before you Owe rule combined the Good Faith Estimate and the Truth in
Lending disclosure and became what document? - ✔✔Loan Estimate
✔✔The Know Before you Owe rule combined the HUD-1 and the final TIL disclosure
became what document? - ✔✔Closing Disclosure
, ✔✔Loan Estimate - ✔✔Designed to help consumers understand the key features,
costs, and risks of the mortgage loan for which they are applying, must be provided to
consumers no later than three business days after they submit a loan application
✔✔Closing Disclosure - ✔✔Designed to help consumers understand all of the costs of
the transaction, must be provided to consumers at least three business days before
closing.
✔✔Home Ownership and Equity Protections Act (HOEPA) - ✔✔Federal law enforcing
special disclosure requirements and restrictions on terms for loans that meet high-cost
mortgage tests.
✔✔What is the biggest factor in determining the cost of your insurance? - ✔✔Location
of your home
✔✔What item is critical to consider when working with a client to prepare a household
system maintenance plan? - ✔✔Target Replacement Date
✔✔When preparing a emergency preparedness plan, where is the best location for
meeting point? - ✔✔A location outside of the neighborhood, preferably a place where
your family can live temporarily.
✔✔Home Equity Loan - ✔✔Provides a lump sum of money for home improvements -
often referred to as a second mortgage
✔✔Home Equity Line of Credit (HELOC) - ✔✔A line of credit from which you can borrow
at any time during the draw period, up to your credit limit.
✔✔FHA 203k Loan - ✔✔A loan insured by FHA to provide you with an initial loan for
purchasing a home as well as funding for home improvement.
✔✔Streamline 203k Loan - ✔✔Permits homebuyers and homeowners to finance up to
$35K into their mortgage to repair, improve, or upgrade their home.
✔✔Title 1 Loan - ✔✔A loan insured by FHA that may be used for alterations, repairs,
and site improvements on single family homes and for alterations and repairs on
multifamily homes.
✔✔Energy Efficient Mortgage (EEM) - ✔✔Assists individuals to purchase an energy
efficient home or refinance a home to make energy efficient improvements
✔✔HELOC - ✔✔Best Improvement loan: A client's home improvement plan consists of
multiple expenses that may be paid over an extended period of time.
