HUD CERTIFICATION EXAM 5 HIGH-YIELD FAIR
HOUSING LAW, RENTAL ASSISTANCE, AND
COMPLIANCE SUMMARY 2026
◉ Steps in creating a budget.
Answer: 1. Help client identify short + long-term goals
2. Track income
3. Track expenses
4. Adjust goals + budget *increase income *decrease expenses + debt
%.
5. Create client action plan
◉ Section of Credit Report: Public Records.
Answer: Items that are listed in the public record, including -
bankruptcy
- judgments
-tax liens
- wage garnishments
◉ Section of Credit Report: Personal information.
Answer: Consumer identification information, including:
,-Name
- Social Security number
- Addresses
-Phone #
- Employer's
◉ Section of Credit Report: Account / Trade line information.
Answer: Info about each consumer credit account, including:
- payment history
- account dates
- credit limit
- balances owed
◉ Payment History.
Answer: Timely / Late
- Payments:Positive: timely
- Negative: late - lien, judgment, collection account, charge-off
account
◉ Type of credit used.
Answer: Positive: Different types of credit show variety -
demonstrates that consumers can manage different types of credit
,Negative: Fever types show limited profile info - higher risk
◉ Length of credit history.
Answer: -How long a person has bad credit
Positive: Longer credit history provides more info for lenders - lower
risk
Negative- shorter history provides little to no info for lenders -
higher risk
◉ Capacity Used.
Answer: -How much of credit available has the person used
Positive: low credit utilization = financial management
Negative: High credit card balances = poor financial management -
maxed out credit cards
◉ Strategies to increase income (9).
Answer: -Find second job
-Work Over time
-Negotiate higher salary / wage
-Sell assets (e.g. car)
-Hold a yard/garage sale
-Teach a skill / craft/ activity
, -Sell a craft
_Charge rent (adult +dependents living @ home)
-Evaluate tax withholding's (if over-with holding) change to increase
income received)
◉ Items to include when tracking expenses.
Answer: Monthly bills (utilities, cell phone, etc.) All Fixed monthly
expenses all cash expenses
Seasonal or annual expenses (i.e car registration, gifts, holiday
season, vacation)
◉ Documents to use when tracking expenses.
Answer: -Bills
-Bank statements
-Credit cards statements
-Records for estimated amount of expected periodic expense
◉ Chapter 7 bankruptcy.
Answer: Liquidation bankruptcy
-Process of selling non-exempt assets to repay creditors in Chapter 7
bankruptcy
-Must meet w/an attorney to determine ability to repay debts -
means test
HOUSING LAW, RENTAL ASSISTANCE, AND
COMPLIANCE SUMMARY 2026
◉ Steps in creating a budget.
Answer: 1. Help client identify short + long-term goals
2. Track income
3. Track expenses
4. Adjust goals + budget *increase income *decrease expenses + debt
%.
5. Create client action plan
◉ Section of Credit Report: Public Records.
Answer: Items that are listed in the public record, including -
bankruptcy
- judgments
-tax liens
- wage garnishments
◉ Section of Credit Report: Personal information.
Answer: Consumer identification information, including:
,-Name
- Social Security number
- Addresses
-Phone #
- Employer's
◉ Section of Credit Report: Account / Trade line information.
Answer: Info about each consumer credit account, including:
- payment history
- account dates
- credit limit
- balances owed
◉ Payment History.
Answer: Timely / Late
- Payments:Positive: timely
- Negative: late - lien, judgment, collection account, charge-off
account
◉ Type of credit used.
Answer: Positive: Different types of credit show variety -
demonstrates that consumers can manage different types of credit
,Negative: Fever types show limited profile info - higher risk
◉ Length of credit history.
Answer: -How long a person has bad credit
Positive: Longer credit history provides more info for lenders - lower
risk
Negative- shorter history provides little to no info for lenders -
higher risk
◉ Capacity Used.
Answer: -How much of credit available has the person used
Positive: low credit utilization = financial management
Negative: High credit card balances = poor financial management -
maxed out credit cards
◉ Strategies to increase income (9).
Answer: -Find second job
-Work Over time
-Negotiate higher salary / wage
-Sell assets (e.g. car)
-Hold a yard/garage sale
-Teach a skill / craft/ activity
, -Sell a craft
_Charge rent (adult +dependents living @ home)
-Evaluate tax withholding's (if over-with holding) change to increase
income received)
◉ Items to include when tracking expenses.
Answer: Monthly bills (utilities, cell phone, etc.) All Fixed monthly
expenses all cash expenses
Seasonal or annual expenses (i.e car registration, gifts, holiday
season, vacation)
◉ Documents to use when tracking expenses.
Answer: -Bills
-Bank statements
-Credit cards statements
-Records for estimated amount of expected periodic expense
◉ Chapter 7 bankruptcy.
Answer: Liquidation bankruptcy
-Process of selling non-exempt assets to repay creditors in Chapter 7
bankruptcy
-Must meet w/an attorney to determine ability to repay debts -
means test
