HUD Exam 2023 Questions and Answers- Homeownership
Which factor is best for housing counselors to use when determining how much a client
can afford to spend on purchasing a home?
A. Debt to-income ratios
B. Annual gross income
C. Savings
D. Options A, B, C
E. None of the above
D. Options A, B, and C
A person or company that makes loans for real estate purchases. "Loan officer" is a
related term that refers to a representative of a lending or mortgage company who is
responsible for soliciting homebuyers and for qualifying and processing loans.
Lender
A government official responsible for determining the value of a property for taxation
purpose.
Assessor
A professional who conducts an inspection of the home's structure and mechanical
systems to determine quality, soundness, and safety. S/he makes the potential
homebuyer aware of any repairs that may be necessary.
Home Inspector
A lender's representative who analyzes a loan application, the potential borrower's
credit history, and a judgement of the property value to determine the amount of risk
involved in making the loan.
Underwriter
A professional who gives an estimate of a property's fair market value based on the
sales of comparable homes in the area and on the property's features. This estimate is
generally required by a lender before loan approval to ensure that the mortgage loan
amount is not more than the value of the property.
Appraiser
Which statement most accurately describes a member of the homebuying team?
A. a real estate agent or broker is typically an attorney or works for an escrow company.
S/he oversees the final transaction in property purchase, at which time the title is
transferred from the seller to the buyer.
B. The lender requires an assessment of the home by a home inspector before loan
approval
C. An insurance agent is also know as a settlement agent.
D. a home inspector is generally paid by the buyer.
D. A home inspector is generally paid by the buyer
Which piece of advice would you give to clients as they begin the process of obtaining
financing?
A. Never speak with lenders before settling on a home.
B. Have all potential lenders pull credit within a 30-day window.
C. Mortgages with adjustable rates are always best.
D. Choose whichever lender is most prompt in returning your phone calls.
B. Have all potential lenders pull credit within a 30-day window.
, All of the following is information necessary for your client to gather in preparation for
filling out the URLA, except:
A. Figures related to income from child support.
B. Figures related to student loans
C. Year home was built
D. Referrals of past landlords
D. Referrals of past lenders
All of the following statements describe working with an appraiser during the "obtaining
financing" step of purchasing a home, except:
A. it is improper for an appraiser to consider racial or religious background of a
neighborhood's residents to determine the value of a home.
B. Lenders hire appraisers
C. Homebuyers can cancel the offer contract if the contract includes a contingency
clause.
D. Homebuyers rarely are allowed to see the appraisal information and for that reason
are encouraged to get a home inspection.
D. Homebuyers rarely are allowed to see the appraisal information and for that reason
are encouraged to get a home inspection.
-In some cases, the lender is required to share the appraisal information with clients. It
is helpful for clients to review the appraisal report with you in order to identify any
improper factors used to determine the home's value. Whether or not clients view the
appraisal, they should have a home inspection done, especially since the two processes
are different from one another.
A client is shopping for a loan and submits a loan application to a lender. The client
asks for information about possible settlement costs, but the lender says that he needs
to see the purchase contract in order to move forward with the process. The lender
should have provided which item?
A. URLA
B. ATR/QM
C. Loan Estimate
D. Closing Disclosure
C. Loan Estimate
A client spoke with five lenders. Four of the five lenders quoted interest rates between
4.1% and 4.6%. One lender mentioned a 3.1% interest rate if she signed for it within the
next 36 hours. She was very interested in this loan, so she asked for more information
(e.g., conditions and fees). The lender provided some information about the loan, but
nothing included the APR. Which regulation deems this practice unlawful?
A. ECOA
B. RESPA
C. TILA
D. HOEPA
C. TILA
A certain mortgage company encourages all its clients to use a specific appraiser. The
appraisers give the mortgage company $100 for every one of its clients who comes to
them. If the mortgage company does not tell clients about the payment it receives for
referrals, this is a breach of which regulation?
Which factor is best for housing counselors to use when determining how much a client
can afford to spend on purchasing a home?
A. Debt to-income ratios
B. Annual gross income
C. Savings
D. Options A, B, C
E. None of the above
D. Options A, B, and C
A person or company that makes loans for real estate purchases. "Loan officer" is a
related term that refers to a representative of a lending or mortgage company who is
responsible for soliciting homebuyers and for qualifying and processing loans.
Lender
A government official responsible for determining the value of a property for taxation
purpose.
Assessor
A professional who conducts an inspection of the home's structure and mechanical
systems to determine quality, soundness, and safety. S/he makes the potential
homebuyer aware of any repairs that may be necessary.
Home Inspector
A lender's representative who analyzes a loan application, the potential borrower's
credit history, and a judgement of the property value to determine the amount of risk
involved in making the loan.
Underwriter
A professional who gives an estimate of a property's fair market value based on the
sales of comparable homes in the area and on the property's features. This estimate is
generally required by a lender before loan approval to ensure that the mortgage loan
amount is not more than the value of the property.
Appraiser
Which statement most accurately describes a member of the homebuying team?
A. a real estate agent or broker is typically an attorney or works for an escrow company.
S/he oversees the final transaction in property purchase, at which time the title is
transferred from the seller to the buyer.
B. The lender requires an assessment of the home by a home inspector before loan
approval
C. An insurance agent is also know as a settlement agent.
D. a home inspector is generally paid by the buyer.
D. A home inspector is generally paid by the buyer
Which piece of advice would you give to clients as they begin the process of obtaining
financing?
A. Never speak with lenders before settling on a home.
B. Have all potential lenders pull credit within a 30-day window.
C. Mortgages with adjustable rates are always best.
D. Choose whichever lender is most prompt in returning your phone calls.
B. Have all potential lenders pull credit within a 30-day window.
, All of the following is information necessary for your client to gather in preparation for
filling out the URLA, except:
A. Figures related to income from child support.
B. Figures related to student loans
C. Year home was built
D. Referrals of past landlords
D. Referrals of past lenders
All of the following statements describe working with an appraiser during the "obtaining
financing" step of purchasing a home, except:
A. it is improper for an appraiser to consider racial or religious background of a
neighborhood's residents to determine the value of a home.
B. Lenders hire appraisers
C. Homebuyers can cancel the offer contract if the contract includes a contingency
clause.
D. Homebuyers rarely are allowed to see the appraisal information and for that reason
are encouraged to get a home inspection.
D. Homebuyers rarely are allowed to see the appraisal information and for that reason
are encouraged to get a home inspection.
-In some cases, the lender is required to share the appraisal information with clients. It
is helpful for clients to review the appraisal report with you in order to identify any
improper factors used to determine the home's value. Whether or not clients view the
appraisal, they should have a home inspection done, especially since the two processes
are different from one another.
A client is shopping for a loan and submits a loan application to a lender. The client
asks for information about possible settlement costs, but the lender says that he needs
to see the purchase contract in order to move forward with the process. The lender
should have provided which item?
A. URLA
B. ATR/QM
C. Loan Estimate
D. Closing Disclosure
C. Loan Estimate
A client spoke with five lenders. Four of the five lenders quoted interest rates between
4.1% and 4.6%. One lender mentioned a 3.1% interest rate if she signed for it within the
next 36 hours. She was very interested in this loan, so she asked for more information
(e.g., conditions and fees). The lender provided some information about the loan, but
nothing included the APR. Which regulation deems this practice unlawful?
A. ECOA
B. RESPA
C. TILA
D. HOEPA
C. TILA
A certain mortgage company encourages all its clients to use a specific appraiser. The
appraisers give the mortgage company $100 for every one of its clients who comes to
them. If the mortgage company does not tell clients about the payment it receives for
referrals, this is a breach of which regulation?
