HUD HOUSING COUNSELOR CERTIFICATION EXAM 2024
ACTUAL EXAM COMPLETE 270 QUESTIONS WITH
DETAILED VERIFIED ANSWERS BEST REVISION
MATERIAL / ALREADY GRADED A+
Adjustable Rate Mortgage (ARM) - ANSWER: Adjustable rate mortgages have an
initial rate that applies for a defined period of time (typically from one month to 10
years), then adjusts at pre-determined intervals for the life of the loan. Interest rates
can increase or decrease when adjusted.
Adjusted Gross Income - ANSWER: Gross income minus adjustments, or reductions,
that one is eligible for, such as deductions for unreimbursed business expenses,
tuition and fees, and contributions to certain retirement accounts.
AFFH - ANSWER: Affirmatively Furthering Fair Housing
AFHMP - ANSWER: Affirmative Fair Housing Marketing Plan
Analysis of Impediments (AI) - ANSWER: Analysis of Impediments is a review of
impediments or barriers that affect the rights of fair housing choice. It covers public
and private policies, practices, and procedures affecting housing choice.
Impediments to fair housing choice are defined as any actions, omissions, or
decisions that restrict, or have the effect of restricting, the availability of housing
choices, based on race, color, religion, sex, disability, familial status, or national
origin. The AI supports fair housing planning; provides essential information to policy
makers, administrative staff, housing providers, lenders, and fair housing advocates;
and assists in building public support for fair housing efforts.
Area Median Income (AMI) - ANSWER: The midpoint in the family income range for a
metropolitan statistical area or for the non-metropolitan parts of a state.
Determined annually by HUD, the figure often is used as a basis to stratify incomes
into very low, low, moderate, and above moderate. Frequently used to determine
income eligibility for various housing programs.
Arrearages - ANSWER: The total amount of past due payments owed to a lender
from a borrower in mortgage payments or to a landlord from a tenant in rental
payments. Also called arrears.
Assistance Animal - ANSWER: An assistance animal is not considered a pet. it is an
animal that works, provides assistance, or performs tasks for the benefit of a person
with a disability, or provides emotional support that alleviates one or more identifies
symptoms or effects of a person's disability. For purposes of reasonable
accommodation requests, the Fair Housing Act does not require an assistance animal
to be individually trained or certified. While dogs are the most common type of
assistance animal, other animals can also be assistance animals.
, Association Dues - ANSWER: Charged by a community or Homeowners Association to
pay for repairs, upkeep, landscaping, improvements, and property management.
Back-End Ratio - ANSWER: A rate that calculates a borrower's total monthly debt,
including housing and other debt obligations, as a percentage of gross monthly
income. Frequently used by lenders to qualify borrowers for a mortgage. Also called
a debt-to-income ratio.
Balloon Payment - ANSWER: An oversize payment due at the end of a mortgage.
Blockbusting - ANSWER: To convince, or attempt to convince, a person to sell or rent
a dwelling because of the entry, or prospective entry, into the neighborhood of a
person or persons of a particular race, color, religion, sex, familial status, national
origin, or with a disability.
Cash-for-keys - ANSWER: An alternative to a legal eviction following foreclosure. The
occupant receives cash funds from the servicer in exchange for turning in the keys
and vacating the property. Certain conditions apply, such as returning the property
in broom-clean condition and with all appliances.
CDBG - ANSWER: Community Development Block Grant
CFPB - ANSWER: Consumer Financial Protection Bureau
Closing Costs - ANSWER: Fees for final property transfer that are not included in the
price of the property. Typical closing costs can include loan origination fees, discount
points, appraisal fee, survey, title insurance, legal fees, real estate professional fees,
prepayments of taxes and insurance, etc. While closing costs often range from 3% to
4% of the purchase price of the home, they can be lower or higher depending on the
geographic region or loan type.
Collection - ANSWER: An account in default with an original creditor and sold to a
third-party debt collector that will continue attempts to collect past due payments.
Community Development Block Grant Program - ANSWER: HUD program that
provides grants to states and localities to provide decent housing and a suitable
living environment and to expand economic opportunities, principally for low- and
moderate-income persons.
Complainant - ANSWER: A person, group, or company that files a complaint which
claims that someone has violated a law.
Conciliation - ANSWER: The attempted resolution of issues raised by a complaint, or
by the investigation of such complaint, through informal negotiations involving the
aggrieved person, the respondent, and the HUD Secretary.
ACTUAL EXAM COMPLETE 270 QUESTIONS WITH
DETAILED VERIFIED ANSWERS BEST REVISION
MATERIAL / ALREADY GRADED A+
Adjustable Rate Mortgage (ARM) - ANSWER: Adjustable rate mortgages have an
initial rate that applies for a defined period of time (typically from one month to 10
years), then adjusts at pre-determined intervals for the life of the loan. Interest rates
can increase or decrease when adjusted.
Adjusted Gross Income - ANSWER: Gross income minus adjustments, or reductions,
that one is eligible for, such as deductions for unreimbursed business expenses,
tuition and fees, and contributions to certain retirement accounts.
AFFH - ANSWER: Affirmatively Furthering Fair Housing
AFHMP - ANSWER: Affirmative Fair Housing Marketing Plan
Analysis of Impediments (AI) - ANSWER: Analysis of Impediments is a review of
impediments or barriers that affect the rights of fair housing choice. It covers public
and private policies, practices, and procedures affecting housing choice.
Impediments to fair housing choice are defined as any actions, omissions, or
decisions that restrict, or have the effect of restricting, the availability of housing
choices, based on race, color, religion, sex, disability, familial status, or national
origin. The AI supports fair housing planning; provides essential information to policy
makers, administrative staff, housing providers, lenders, and fair housing advocates;
and assists in building public support for fair housing efforts.
Area Median Income (AMI) - ANSWER: The midpoint in the family income range for a
metropolitan statistical area or for the non-metropolitan parts of a state.
Determined annually by HUD, the figure often is used as a basis to stratify incomes
into very low, low, moderate, and above moderate. Frequently used to determine
income eligibility for various housing programs.
Arrearages - ANSWER: The total amount of past due payments owed to a lender
from a borrower in mortgage payments or to a landlord from a tenant in rental
payments. Also called arrears.
Assistance Animal - ANSWER: An assistance animal is not considered a pet. it is an
animal that works, provides assistance, or performs tasks for the benefit of a person
with a disability, or provides emotional support that alleviates one or more identifies
symptoms or effects of a person's disability. For purposes of reasonable
accommodation requests, the Fair Housing Act does not require an assistance animal
to be individually trained or certified. While dogs are the most common type of
assistance animal, other animals can also be assistance animals.
, Association Dues - ANSWER: Charged by a community or Homeowners Association to
pay for repairs, upkeep, landscaping, improvements, and property management.
Back-End Ratio - ANSWER: A rate that calculates a borrower's total monthly debt,
including housing and other debt obligations, as a percentage of gross monthly
income. Frequently used by lenders to qualify borrowers for a mortgage. Also called
a debt-to-income ratio.
Balloon Payment - ANSWER: An oversize payment due at the end of a mortgage.
Blockbusting - ANSWER: To convince, or attempt to convince, a person to sell or rent
a dwelling because of the entry, or prospective entry, into the neighborhood of a
person or persons of a particular race, color, religion, sex, familial status, national
origin, or with a disability.
Cash-for-keys - ANSWER: An alternative to a legal eviction following foreclosure. The
occupant receives cash funds from the servicer in exchange for turning in the keys
and vacating the property. Certain conditions apply, such as returning the property
in broom-clean condition and with all appliances.
CDBG - ANSWER: Community Development Block Grant
CFPB - ANSWER: Consumer Financial Protection Bureau
Closing Costs - ANSWER: Fees for final property transfer that are not included in the
price of the property. Typical closing costs can include loan origination fees, discount
points, appraisal fee, survey, title insurance, legal fees, real estate professional fees,
prepayments of taxes and insurance, etc. While closing costs often range from 3% to
4% of the purchase price of the home, they can be lower or higher depending on the
geographic region or loan type.
Collection - ANSWER: An account in default with an original creditor and sold to a
third-party debt collector that will continue attempts to collect past due payments.
Community Development Block Grant Program - ANSWER: HUD program that
provides grants to states and localities to provide decent housing and a suitable
living environment and to expand economic opportunities, principally for low- and
moderate-income persons.
Complainant - ANSWER: A person, group, or company that files a complaint which
claims that someone has violated a law.
Conciliation - ANSWER: The attempted resolution of issues raised by a complaint, or
by the investigation of such complaint, through informal negotiations involving the
aggrieved person, the respondent, and the HUD Secretary.
