HUD Housing Counseling Exam 2023

Civil Rights Act of 1866 - Answer- Federal law granting citizenship to former slaves; passed over Johnson's veto. (Race and Color) Fair Housing Act of 1968 - Answer- banned discrimination in the rental or sale of housing (Race, color, religion, national origin) Housing and Community Development Act of 1974 - Answer- added gender (sex) to the protected classes Fair Housing Amendments Act of 1988 - Answer- Added Disability and familial status to protected classes. Real Estate Settlement and procedures Act RESPA - Answer- Requires lenders and brokers to ensure that applicants understand the terms and fees of the mortgage transaction that they are considering Home Mortgage Disclosure Act (HMDA) - Answer- Requires financial institutions to maintain and annually disclose date about home purchases, home purchase pre-approvals, home improvements and refinance applications involving 1 to 4 unit and multifamily dwellings Electronic Communications Privacy Act - Answer- Prohibits persons from tampering with computers or accessing certain computerized records without authorizations. The Act also prohibits providers of electronic communications services from disclosing the contents of stored communications. Community Reinvestment Act CRA - Answer- A congressional act that encourages mortgage originators to actively lend in their communities and that requires financial institutions to evaluate the "fairness" of their lending practices. Restricts the collection and use of information that would result in housing discrimination on the basis of race, sex, religion, national origin and a variety of other factors. - Answer- Fair Housing Act Prohibits discrimination by direct providers of housing, such as landlords and real estate companies as well as other entities, such as municipalities, banks of other lending institutions and homeowners insurance companies whose discriminatory practices make housing unavailable to persons because of: Race or Color, Religion, Sex/Gender, National Origin, Familial Status, Disability.. - Answer- Fair Housing Statute Opens up services and employment opportunities to the 43 million Americans with disabilities. - Answer- Americans with Disabilities Act ADA Protects consumers from abusive, unfair, and deceptive practices by third-party debt collectors. - Answer- Fair Debt Collection Practices Act FDCPA Prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because you get public assistance. - Answer- Equal Credit Opportunity act ECOA Restrictions collections of use of information that would result in employment discrimination on the basis of race, sex, religion, national origin and a variety of other characteristics. - Answer- Equal Employment Opportunity Act EEOC Mandates that personal data be collected as much as possible directly from the record subject. - Answer- Privacy Act Requires each of the nationwide consumer reporting companies: Equifax, Experian, and Transunion to provide you with a free copy of your credit report, at your request, one every 12 months - Answer- The Fair and Accurate Credit Transactions Act FACTA Prevents identity theft, improve resolution of consumer disputes, improve the accuracy of consumer records, make improvements in the use of, and consumer access to, credit information, and for other purposes. - Answer- The Fair Credit Billing Act FCBA Applies to "open end" credit accounts, such as credit cards, and revolving charge accounts - such as department store accounts. - Answer- Fair Credit Reporting Act FCRA Prohibits opening of mail without a search warrant or the addressee's consent - Answer- Mail Privacy Statute Amends the Truth in Lending Act (TILA) and establishes requirements for certain loans with high rates and/or high fees - Answer- Home Ownership and Equity Protection Act HOEPA All of the following would help a counselor develop a realistic household budget, except: - Payment information for a paid-off car - Amount spent on groceries - Rent payment information - Monthly cable bill - Answer- Payment information for a paid-off car The following are good ways to decrease expenses except: - Cancel car insurance - Cancel cable service - Brown bag lunch for work - Rent videos instead of going to the movies - Answer- Cancel car insurance Steps to create an Action Plan - Answer- - State goal - Identify obstacles - Agree on livable budget - Steps with dates to achieve goal - List who is responsible for steps - Signature (optional) - follow up and update Which of the following is not needed in determining a budget? - Pay stubs - Credit report - Utility bill - Child support - Stock dividends - Answer- Credit report Stock dividends Tran would like to take a vacation and needs $3,000. He has $400 saved already. If he wants to take a trip in 18 months how much will he need to save monthly? - Answer- $145 Which section of a credit report contains information about student loans? - Inquiries - Public records - Account Information - Consumer Rights -Personal Information - Answer- Account information What makes up a credit score? - Answer- 35% - Account History 30% - Amounts Owed 15% - Length of Credit History 10% - New Credit 10% - Types of Credit Fair Credit Reporting Act (FCRA) - Answer- - Right to know what is in your file - Right to dispute incomplete or inaccurate information - Access to your file is limited - May seek damages from violators - May have additional state rights Fair and Accurate Credit Transactions Act (FACTA) - Answer- - Right to a free annual credit report - Right to place a fraud alert for 90 days - Credit card numbers must be truncated Fair Credit Billing Act (FCBA) - Answer- - Dispute errors on account (within 60 days) - Must be billed in timely manner (at least 14 days before payment is due) Items to include when tracking income - Answer- - regular salary - temporary jobs - unemployment compensation - public assistance How to calculate income if the amounts varies month to month - Answer- Average it out over 12 months Items NOT to include when calculating income - Answer- - Pre-tax payroll deductions - Credit score Documents to use to calculate income - Answer- - paychecks, direct deposit slips - if self-employed, income and expense sheet - additional income checks or cash - Government benefits letters (SSI, unemployment, etc) Items to include when tracking expenses - Answer- - all bills - all fixed monthly expenses - all cash expenses - seasonal or annual expenses (holidays, gifts, vacations) Documents to use to track expenses - Answer- - Utility, insurance and other bills - Bank statements - Credit card statements - Records about car registration, school supplies etc. All of the following are reasons why it is important for a client to track income and expenses before finalizing a budget, except: -It helps show clients that they actually spend less on some expenses than they think. - It helps identify spending habits. - It helps show clients that their spending and expenses are out of control. - It helps define realistic and attainable goals and timelines. - Answer- It helps show clients that their spending and expenses are out of control. What are the secondary steps to help clients develop a realistic budget? - Answer- - Examine content in the budget worksheet - Ask client what she has discovered about income and spending habits - Ask client if she thinks her goals are achievable - Coach client on strategies for defining needs over wants - Walk through strategies for adjusting goals and budget - Develop a client action plan that includes client actions/tasks and time frames Strategies for increasing income - Answer- 1. Find a second job 2. Work overtime 3. Negotiate higher salary/wage 4. Sell assets (e.g., car) 5. Hold a yard sale 6. Teach a skill/craft/activity 7. Sell a craft 8. Charge rent (if adult dependents in home) 9. Evaluate tax withholdings Strategies for decreasing expenses - Answer- 1. Prioritize needs vs. wants 2. Reduce or eliminate "wants" (e.g., clothes, gym) 3. Cancel or downgrade services (e.g., cable, telephone 4. Limit miscellaneous spending 5. Stick to a shopping list 6. Reduce debt (pay off a loan or credit card) 7. Move to more affordable housing 8. Change insurance coverage for lower premiums, but don't cancel Which of the following is a "want" and not a "need"? Health Care Premium Car Insurance Gym Membership Rent - Answer- Gym Membership All of the following are effective ways to decrease expenses, except: Cancel insurance policy Cancel cable service