HUD HOUSING COUNSEL MAIN CORE EXAMS QUESTIONS
AND ANSWERS FIRM A+
✔✔A client with limited financial resources wants to improve safety in the home to
prepare for natural disasters. Which is the best resource for the client to use in
researching this topic? - ✔✔Ready.gov
✔✔Which would be the best location to identify in a household emergency
preparedness plan as a safe place to meet in the event of an evacuation? - ✔✔A motel
in a neighboring community
✔✔What was the primary purpose of the Making Home Affordable program? - ✔✔To
assist homeowners in avoiding foreclosure
✔✔The terms Ability to Repay and Qualified Mortgage were defined in regulations
implemented by the Consumer Finance Protection Bureau (CFPB) because of what
industry wide problem? - ✔✔Subprime lending
✔✔Two homeowners are making adjustments to household spending. Their Client
Action Plans outline several potential steps. Based on the action steps for each client,
what might a housing counselor assume? - ✔✔Client 2 is more likely to be in either
default or imminent default.
✔✔What should a counselor and tenant focus on when developing an emergency
budget? - ✔✔Increasing income and decreasing expenses
✔✔A client is delinquent on the mortgage and at risk of default. The client is considering
signing the deed over to a real estate investor to avoid foreclosure. What should the
housing counselor recommend? - ✔✔Advise against signing over the deed to a real
estate investor as a solution to avoid foreclosure.
✔✔Which option would be most likely to require that the mortgage is current for
eligibility? - ✔✔Refinance
✔✔A family suffers a loss of income due to unemployment and is now facing a pending
foreclosure. After reviewing the family's budget, the housing counselor learns that the
family has a negative cash flow of almost $300. The housing counselor recommends
adjusting expenses, which results in a positive cash flow of $400 per month. The family
would like to pursue an FHA retention option. They are seven months behind on the
mortgage and their debt-to-income ratio is 29%. Which option is best for this situation? -
✔✔Special Forbearance
, ✔✔Which aspect of a loan may a client be able to modify when seeking a loan
modification due to a financial hardship because of a divorce? - ✔✔Loan Term
✔✔What information is needed to counsel every client through the loss mitigation
process? - ✔✔Type of mortgage
✔✔Why is it important to include a 4506-T form when submitting a loss mitigation
package? - ✔✔Because it authorizes the servicer to obtain the client's tax returns
✔✔Which retention option would most likely offer a principal reduction? - ✔✔Loan
Modification
✔✔A client who is not behind on the mortgage was recently informed of a reduction of
income for two months by the client's employer. The client has an FHA loan and would
like to take action as soon as possible to avoid a mortgage delinquency. Which FHA
Loss Mitigation option is likely best for this client? - ✔✔Informal/Formal Forbearance
✔✔What loss mitigation option may allow a borrower an FHA Partial Claim? - ✔✔FHA-
HAMP Loan Modification
✔✔Which type of organization making an unsolicited offer to avoid foreclosure could
indicate a scam? - ✔✔A company that offers "government-approved" loan modifications
✔✔How should a homeowner interpret a letter from a lawyer offering to stop foreclosure
proceedings for an upfront fee? - ✔✔As a possible scam
✔✔Which option allows the borrower to avoid foreclosure by disposing of a property for
an amount less than the outstanding mortgage balance? - ✔✔Short Sale
✔✔Under what circumstance must a servicer refrain from beginning the foreclosure
process? - ✔✔The client has a pending loan modification application.
✔✔Which does a servicer do in the non-judicial foreclosure process? - ✔✔Issues a
Notice of Default (NOD) to the borrower
✔✔In which circumstance may a tenant terminate a lease without financial
repercussions? - ✔✔Tenant's spouse is relocated for a military assignment
✔✔When a housing counselor is assisting a low-income client in danger of eviction,
which referral would be most appropriate? - ✔✔Legal aid services
AND ANSWERS FIRM A+
✔✔A client with limited financial resources wants to improve safety in the home to
prepare for natural disasters. Which is the best resource for the client to use in
researching this topic? - ✔✔Ready.gov
✔✔Which would be the best location to identify in a household emergency
preparedness plan as a safe place to meet in the event of an evacuation? - ✔✔A motel
in a neighboring community
✔✔What was the primary purpose of the Making Home Affordable program? - ✔✔To
assist homeowners in avoiding foreclosure
✔✔The terms Ability to Repay and Qualified Mortgage were defined in regulations
implemented by the Consumer Finance Protection Bureau (CFPB) because of what
industry wide problem? - ✔✔Subprime lending
✔✔Two homeowners are making adjustments to household spending. Their Client
Action Plans outline several potential steps. Based on the action steps for each client,
what might a housing counselor assume? - ✔✔Client 2 is more likely to be in either
default or imminent default.
✔✔What should a counselor and tenant focus on when developing an emergency
budget? - ✔✔Increasing income and decreasing expenses
✔✔A client is delinquent on the mortgage and at risk of default. The client is considering
signing the deed over to a real estate investor to avoid foreclosure. What should the
housing counselor recommend? - ✔✔Advise against signing over the deed to a real
estate investor as a solution to avoid foreclosure.
✔✔Which option would be most likely to require that the mortgage is current for
eligibility? - ✔✔Refinance
✔✔A family suffers a loss of income due to unemployment and is now facing a pending
foreclosure. After reviewing the family's budget, the housing counselor learns that the
family has a negative cash flow of almost $300. The housing counselor recommends
adjusting expenses, which results in a positive cash flow of $400 per month. The family
would like to pursue an FHA retention option. They are seven months behind on the
mortgage and their debt-to-income ratio is 29%. Which option is best for this situation? -
✔✔Special Forbearance
, ✔✔Which aspect of a loan may a client be able to modify when seeking a loan
modification due to a financial hardship because of a divorce? - ✔✔Loan Term
✔✔What information is needed to counsel every client through the loss mitigation
process? - ✔✔Type of mortgage
✔✔Why is it important to include a 4506-T form when submitting a loss mitigation
package? - ✔✔Because it authorizes the servicer to obtain the client's tax returns
✔✔Which retention option would most likely offer a principal reduction? - ✔✔Loan
Modification
✔✔A client who is not behind on the mortgage was recently informed of a reduction of
income for two months by the client's employer. The client has an FHA loan and would
like to take action as soon as possible to avoid a mortgage delinquency. Which FHA
Loss Mitigation option is likely best for this client? - ✔✔Informal/Formal Forbearance
✔✔What loss mitigation option may allow a borrower an FHA Partial Claim? - ✔✔FHA-
HAMP Loan Modification
✔✔Which type of organization making an unsolicited offer to avoid foreclosure could
indicate a scam? - ✔✔A company that offers "government-approved" loan modifications
✔✔How should a homeowner interpret a letter from a lawyer offering to stop foreclosure
proceedings for an upfront fee? - ✔✔As a possible scam
✔✔Which option allows the borrower to avoid foreclosure by disposing of a property for
an amount less than the outstanding mortgage balance? - ✔✔Short Sale
✔✔Under what circumstance must a servicer refrain from beginning the foreclosure
process? - ✔✔The client has a pending loan modification application.
✔✔Which does a servicer do in the non-judicial foreclosure process? - ✔✔Issues a
Notice of Default (NOD) to the borrower
✔✔In which circumstance may a tenant terminate a lease without financial
repercussions? - ✔✔Tenant's spouse is relocated for a military assignment
✔✔When a housing counselor is assisting a low-income client in danger of eviction,
which referral would be most appropriate? - ✔✔Legal aid services
