HUD Exam- Homeownership/ Questions with
Certified Answers.
Which piece of advice would you give to clients as they begin the process of
obtaining financing?
A. Never speak with lenders before settling on a home.
B. Have all potential lenders pull credit within a 30-day window.
C. Mortgages with adjustable rates are always best.
D. Choose whichever lender is most prompt in returning your phone calls. -
Answer: B. Have all potential lenders pull credit within a 30-day window.
Page 1 of 18
,All of the following is information necessary for your client to gather in
preparation for filling out the URLA, except:
A. Figures related to income from child support.
B. Figures related to student loans
C. Year home was built
D. Referrals of past landlords - Answer: D. Referrals of past lenders
All of the following statements describe working with an appraiser during the
"obtaining financing" step of purchasing a home, except:
A. it is improper for an appraiser to consider racial or religious background of a
neighborhood's residents to determine the value of a home.
B. Lenders hire appraisers
C. Homebuyers can cancel the offer contract if the contract includes a contingency
clause.
D. Homebuyers rarely are allowed to see the appraisal information and for that
reason are encouraged to get a home inspection. - Answer: D. Homebuyers rarely
are allowed to see the appraisal information and for that reason are encouraged
to get a home inspection.
-In some cases, the lender is required to share the appraisal information with
clients. It is helpful for clients to review the appraisal report with you in order to
identify any improper factors used to determine the home's value. Whether or
Page 2 of 18
, not clients view the appraisal, they should have a home inspection done,
especially since the two processes are different from one another.
A client is shopping for a loan and submits a loan application to a lender. The
client asks for information about possible settlement costs, but the lender says
that he needs to see the purchase contract in order to move forward with the
process. The lender should have provided which item?
A. URLA
B. ATR/QM
C. Loan Estimate
D. Closing Disclosure - Answer: C. Loan Estimate
A client spoke with five lenders. Four of the five lenders quoted interest rates
between 4.1% and 4.6%. One lender mentioned a 3.1% interest rate if she signed
for it within the next 36 hours. She was very interested in this loan, so she asked
for more information (e.g., conditions and fees). The lender provided some
information about the loan, but nothing included the APR. Which regulation
deems this practice unlawful?
A. ECOA
B. RESPA
C. TILA
Page 3 of 18
Certified Answers.
Which piece of advice would you give to clients as they begin the process of
obtaining financing?
A. Never speak with lenders before settling on a home.
B. Have all potential lenders pull credit within a 30-day window.
C. Mortgages with adjustable rates are always best.
D. Choose whichever lender is most prompt in returning your phone calls. -
Answer: B. Have all potential lenders pull credit within a 30-day window.
Page 1 of 18
,All of the following is information necessary for your client to gather in
preparation for filling out the URLA, except:
A. Figures related to income from child support.
B. Figures related to student loans
C. Year home was built
D. Referrals of past landlords - Answer: D. Referrals of past lenders
All of the following statements describe working with an appraiser during the
"obtaining financing" step of purchasing a home, except:
A. it is improper for an appraiser to consider racial or religious background of a
neighborhood's residents to determine the value of a home.
B. Lenders hire appraisers
C. Homebuyers can cancel the offer contract if the contract includes a contingency
clause.
D. Homebuyers rarely are allowed to see the appraisal information and for that
reason are encouraged to get a home inspection. - Answer: D. Homebuyers rarely
are allowed to see the appraisal information and for that reason are encouraged
to get a home inspection.
-In some cases, the lender is required to share the appraisal information with
clients. It is helpful for clients to review the appraisal report with you in order to
identify any improper factors used to determine the home's value. Whether or
Page 2 of 18
, not clients view the appraisal, they should have a home inspection done,
especially since the two processes are different from one another.
A client is shopping for a loan and submits a loan application to a lender. The
client asks for information about possible settlement costs, but the lender says
that he needs to see the purchase contract in order to move forward with the
process. The lender should have provided which item?
A. URLA
B. ATR/QM
C. Loan Estimate
D. Closing Disclosure - Answer: C. Loan Estimate
A client spoke with five lenders. Four of the five lenders quoted interest rates
between 4.1% and 4.6%. One lender mentioned a 3.1% interest rate if she signed
for it within the next 36 hours. She was very interested in this loan, so she asked
for more information (e.g., conditions and fees). The lender provided some
information about the loan, but nothing included the APR. Which regulation
deems this practice unlawful?
A. ECOA
B. RESPA
C. TILA
Page 3 of 18
