Page 1 of 42
HUD CERTIFICATION EXAM | FREQUENTLY
TESTED QUESTIONS WITH CORRECT
ANSWERS | BRAND NEW!
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 - ✔✔✔ Correct Answer > Pay stub
In order to comply with the Know Before You Owe rule, which
disclosures were replaced with new versions that more clearly
outline mortgage terms to borrowers?
-Loan Estimate and HUD-1 Settlement Statement
-Good Faith Estimate (GFE) and Closing Disclosure
-Loan Estimate and Closing Disclosure
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-Good Faith Estimate (GFE) and HUD-1 Settlement Statement -
✔✔✔ Correct Answer > Loan Estimate and Closing Disclosure
Which government regulation prohibits a lender from
discriminating against a borrower who uses public assistance to
qualify for a mortgage loan?
Truth in Lending Act (TILA)
Home Ownership and Equity Protections Act (HOEPA)
Equal Credit Opportunity Act (ECOA)
Real Estate Settlement Procedures Act (RESPA) - ✔✔✔ Correct
Answer > Equal Credit Opportunity Act (ECOA)
Which entity would be most likely to issue a Housing Choice
Voucher?
Local housing authority
HUD
Local nonprofit organization
Apartment complex - ✔✔✔ Correct Answer > HUD
What is the purpose of the Veterans Affairs Supportive Housing
(VASH) program?
,Page 3 of 42
-To end veteran homelessness
-To offer veterans the same benefits as the Housing Choice
Voucher Program
-To help veterans obtain a VA loan
-To provide rental vouchers to most veterans - ✔✔✔ Correct Answer >
To end veteran homelessness
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 - ✔✔✔ Correct Answer
> Find a second job
A credit report may contain which information?
The number of accounts in collection status
A history of payments on an electric bill
, Page 4 of 42
Income history
Criminal record - ✔✔✔ Correct 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. - ✔✔✔
Correct 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.
HUD CERTIFICATION EXAM | FREQUENTLY
TESTED QUESTIONS WITH CORRECT
ANSWERS | BRAND NEW!
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 - ✔✔✔ Correct Answer > Pay stub
In order to comply with the Know Before You Owe rule, which
disclosures were replaced with new versions that more clearly
outline mortgage terms to borrowers?
-Loan Estimate and HUD-1 Settlement Statement
-Good Faith Estimate (GFE) and Closing Disclosure
-Loan Estimate and Closing Disclosure
,Page 2 of 42
-Good Faith Estimate (GFE) and HUD-1 Settlement Statement -
✔✔✔ Correct Answer > Loan Estimate and Closing Disclosure
Which government regulation prohibits a lender from
discriminating against a borrower who uses public assistance to
qualify for a mortgage loan?
Truth in Lending Act (TILA)
Home Ownership and Equity Protections Act (HOEPA)
Equal Credit Opportunity Act (ECOA)
Real Estate Settlement Procedures Act (RESPA) - ✔✔✔ Correct
Answer > Equal Credit Opportunity Act (ECOA)
Which entity would be most likely to issue a Housing Choice
Voucher?
Local housing authority
HUD
Local nonprofit organization
Apartment complex - ✔✔✔ Correct Answer > HUD
What is the purpose of the Veterans Affairs Supportive Housing
(VASH) program?
,Page 3 of 42
-To end veteran homelessness
-To offer veterans the same benefits as the Housing Choice
Voucher Program
-To help veterans obtain a VA loan
-To provide rental vouchers to most veterans - ✔✔✔ Correct Answer >
To end veteran homelessness
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 - ✔✔✔ Correct Answer
> Find a second job
A credit report may contain which information?
The number of accounts in collection status
A history of payments on an electric bill
, Page 4 of 42
Income history
Criminal record - ✔✔✔ Correct 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. - ✔✔✔
Correct 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.
