HUD CERTIFICATION EXAM 5 CORE PUBLIC
HOUSING POLICIES AND FEDERAL HOUSING
PROGRAMS REVIEW 2026
◉ The Dodd-Frank Act.
Answer: protects borrowers from predatory lending practices
◉ Affirmatively Furthering Fair Housing (AFFH).
Answer: Advocating for lenders to operate in underserved areas
◉ After how many days can foreclosure proceedings begin if the
client is not being evaluated for loss mitigation, and has missed
payments on an FHA loan.
Answer: 120
◉ FHA 203K Loan.
Answer: allows the homeowner to refinance the home loan to
perform repair
◉ Streamlined 203K Loan.
,Answer: minor rehabilitation and/or home improvement projects
that will not require the involvement of consultants, engineers,
and/or architects
◉ key advantage of the client using a real estate agent versus selling
her house on her own.
Answer: Real estate agents negotiate on behalf of the client.
◉ A means test.
Answer: bankruptcy qualification that considers income and equity
in assets to determine if a client has the ability to repay part of the
debt
◉ Default.
Answer: when a payment has not been made after 60 to 90 days.
FHA 30 days
◉ Delinquent.
Answer: timely mortgage payments by the end of the grace period
(14 day)
◉ Which notice must the servicer send the client once the mortgage
is delinquent and before 45 days past due?.
Answer: Housing counseling
,◉ advertisement that guarantees a government-approved loan
modification must be reported to.......
Answer: Report the company to the Federal Trade Commission
(FTC)
◉ The only mortgage loan product that allows family assistance.
Answer: FHA - USDA and VA do not require down payment, and
conventional loans won't allow family funds
◉ Consumer Finance Protection Bureau CFPB.
Answer: Easier-to-use mortgage disclosure forms that clearly
outline the terms of a mortgage to the borrower
◉ Satisfies efforts to Affirmatively Further Fair Housing.
Answer: Reviewing marketing materials of local mortgage lenders
satisfies efforts to Affirmatively Further Fair Housing
◉ Chapter 7 Bankruptcy.
Answer: Means test, Liquidation of assets, best for client with no
assets
◉ Chapter 13 bankrupcy.
, Answer: retain house/car, Wager earner plan-pay all or part of
debts 3-5 yrs,
◉ Earned Income Tax Credit (EITC).
Answer: Low to moderate earned income individuals or family. Net
earnings from self employment. Tax credits are based on income,
marital status, number of children
◉ Child and dependent care tax credit.
Answer: working or looking for work may be eligible if they are
paying a service to take care of a dependent (child or adult). Also
may claim additional credits for qualifying children under 17
◉ Home Equity Line of Credit (HELOC).
Answer: multiple expenses over a long period of time. Draw period
10 yrs. Repayment 15yrs. Lower interest rate.
◉ Home Equity Loan.
Answer: do not have a lot of funds for closing, a one-time expense,
pay off the debt quickly
◉ How often is the client updated once Loss Mitigation packet is
submited.
HOUSING POLICIES AND FEDERAL HOUSING
PROGRAMS REVIEW 2026
◉ The Dodd-Frank Act.
Answer: protects borrowers from predatory lending practices
◉ Affirmatively Furthering Fair Housing (AFFH).
Answer: Advocating for lenders to operate in underserved areas
◉ After how many days can foreclosure proceedings begin if the
client is not being evaluated for loss mitigation, and has missed
payments on an FHA loan.
Answer: 120
◉ FHA 203K Loan.
Answer: allows the homeowner to refinance the home loan to
perform repair
◉ Streamlined 203K Loan.
,Answer: minor rehabilitation and/or home improvement projects
that will not require the involvement of consultants, engineers,
and/or architects
◉ key advantage of the client using a real estate agent versus selling
her house on her own.
Answer: Real estate agents negotiate on behalf of the client.
◉ A means test.
Answer: bankruptcy qualification that considers income and equity
in assets to determine if a client has the ability to repay part of the
debt
◉ Default.
Answer: when a payment has not been made after 60 to 90 days.
FHA 30 days
◉ Delinquent.
Answer: timely mortgage payments by the end of the grace period
(14 day)
◉ Which notice must the servicer send the client once the mortgage
is delinquent and before 45 days past due?.
Answer: Housing counseling
,◉ advertisement that guarantees a government-approved loan
modification must be reported to.......
Answer: Report the company to the Federal Trade Commission
(FTC)
◉ The only mortgage loan product that allows family assistance.
Answer: FHA - USDA and VA do not require down payment, and
conventional loans won't allow family funds
◉ Consumer Finance Protection Bureau CFPB.
Answer: Easier-to-use mortgage disclosure forms that clearly
outline the terms of a mortgage to the borrower
◉ Satisfies efforts to Affirmatively Further Fair Housing.
Answer: Reviewing marketing materials of local mortgage lenders
satisfies efforts to Affirmatively Further Fair Housing
◉ Chapter 7 Bankruptcy.
Answer: Means test, Liquidation of assets, best for client with no
assets
◉ Chapter 13 bankrupcy.
, Answer: retain house/car, Wager earner plan-pay all or part of
debts 3-5 yrs,
◉ Earned Income Tax Credit (EITC).
Answer: Low to moderate earned income individuals or family. Net
earnings from self employment. Tax credits are based on income,
marital status, number of children
◉ Child and dependent care tax credit.
Answer: working or looking for work may be eligible if they are
paying a service to take care of a dependent (child or adult). Also
may claim additional credits for qualifying children under 17
◉ Home Equity Line of Credit (HELOC).
Answer: multiple expenses over a long period of time. Draw period
10 yrs. Repayment 15yrs. Lower interest rate.
◉ Home Equity Loan.
Answer: do not have a lot of funds for closing, a one-time expense,
pay off the debt quickly
◉ How often is the client updated once Loss Mitigation packet is
submited.
