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HUD CERTIFICATION 2 LATEST VERSIONS 2026 VERSION A AND
B COMPLETE 200 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS)
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?
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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.
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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
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-Fair Credit Reporting Act
-Fair Housing Act
-Fair and Accurate Credit Transactions Act ......ANSWER......Fair Credit
Billing Act
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?
-"You have been a victim of predatory lending and should file a report
with the Consumer Finance Protection Bureau (CFPB)."
-"The loan seems reasonable. You might do better, but I cannot steer
you to any particular loan originator."
-"I am unable to determine whether the loan is predatory, but I suggest
you shop around with other lending sources."
-"I cannot offer legal advice, but I would not proceed with the loan."
......ANSWER......"I am unable to determine whether the loan is
predatory, but I suggest you shop around with other lending sources."
HUD CERTIFICATION 2 LATEST VERSIONS 2026 VERSION A AND
B COMPLETE 200 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS)
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?
,2|Page
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.
,3|Page
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
, 4|Page
-Fair Credit Reporting Act
-Fair Housing Act
-Fair and Accurate Credit Transactions Act ......ANSWER......Fair Credit
Billing Act
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?
-"You have been a victim of predatory lending and should file a report
with the Consumer Finance Protection Bureau (CFPB)."
-"The loan seems reasonable. You might do better, but I cannot steer
you to any particular loan originator."
-"I am unable to determine whether the loan is predatory, but I suggest
you shop around with other lending sources."
-"I cannot offer legal advice, but I would not proceed with the loan."
......ANSWER......"I am unable to determine whether the loan is
predatory, but I suggest you shop around with other lending sources."
