HUD Housing Counseling Exam 2023

Rental Obstacle + Solutions: Low Income - Answer- -Some Renters reject people whose Rent would be more than 30% of GMI -Solutions -Apply for Housing Assistance -Expand housing search areas -Get a roommate -Move in w/family or friends Strategies for decreasing expenses and debt - Answer- Prioritize "needs over "wants" -reduce or eliminate "wants" -cancel or downgrade services(e.g. cable, telephone) -limit miscellaneous spending - stick to a shopping list - pay off a loan or credit card - move to more affordable housing - change insurance coverage to lower premiums Fair Credit Reporting Act (FCRA) - Answer- -Right to know what is your file -Right to dispute incomplete or inaccurate information - Access to your file is limited only to people w/valid need (i.e, creditor, insurer) -You may seek damages from violators (sue) - States have their own rules which additionally project What documents to use when tracking income - Answer- -Paychecks, direct deposits slips - If self-employed, income + expenses sheet - Additional income checks or cash - Government benefit letters Site to obtain free credit report - Answer- Chapter 13 bankruptcy - Answer- Allows individuals w/regular income to develop a plan to repay all or part of their debts over 3 to 5 years can stop foreclose sure proceedings + may delinquent mortgage payments over time Steps to take if victim of identity theft - Answer- -Place a fraud alert w/the credit reporting agencies - order credit reports to review + identify inaccuracies - create an identify theft report obtain ID theft affidavit from the FTC - File a police report Fair and Accurate credit Transcription Act (FACTA) - Answer- -Right to free annual credit report - Right to place a fraud alert on your credit file - Receipts may not include entirety of credit card #s Four Steps of Asset building - Answer- 1.Chose the right bank or credit union account 2. Build savings for emergencies + Large purchase 3. Invest for retirement 4. Take advantage of tax credits Fair credit billing Act (FCBA) - Answer- -You can dispute billing errors associated w/credit card account - Must be billed in a timely manner % of factors how they affect credit score - Answer- 35% account history 30% amounts owed 15% length of credit history 10% new credit 10% types of credit used Credit reporting agencies on FICO Score - Answer- -EQUIFAX - EXPERIAN - TRANS UNION FICO Score - Answer- -Credit scores often referred to as = Fair Isaac Corporation Range:300-850 Means test - Answer- A bankruptcy qualification that considers income + equity in assets to determine if a client has the ability to repay part of the debt How to fix: Credit Card maxed / too much debt - Answer- -Pay down debt + keep balances low - Pay more than minimum - know the balance - check statements How to fix: Delinquencies / collections / Judgments - Answer- Get current + pay on time moving forward - sett up payments reminders - adjust budget Factors in determining credit score - Answer- -Payments History - Capacity used - Length of credit history - Type of credit used - New credit Inquires - Answer- Request initiated by a company or person for a consumer's credit profile information How to fix: Incorrect information on a credit report - Answer- Dispute inaccuracies: *Notify credit reporting agencies of inaccuracies + provide supporting documentation * keep records of dispute documentation Steps in creating a budget - Answer- 1. Help client identify short + long-term goals 2. Track income 3. Track expenses 4. Adjust goals + budget *increase income *decrease expenses + debt %. 5. Create client action plan Section of Credit Report: Public Records - Answer- Items that are listed in the public record, including -bankruptcy - judgments -tax liens - wage garnishments Section of Credit Report: Per