HUD HC Cert Exam - Review 1 Questions And Answers Verified 100% Correct

HUD HC Cert Exam - Review 1 Questions And Answers Verified 100% Correct The client currently keeps the $45,000 remaining from the life insurance settlement in a regular checking account. Her goal is to use this money towards her down payment. Which action should the housing counselor suggest to this client? A- Move the funds into a mutual fund B- Move funds to a large purchase savings account with limited accessibility C- Leave the money in her current checking account for easy access D- Move funds into a long-term Certificate of Deposit - ANSWER Move funds to a large purchase savings account with limited accessibility The client wants to move her family to a lower-priced rental unit to save money for a home, but is struggling with the upfront fees required to move to a new apartment complex. Which strategy would be most effective to help the client secure affordable housing and cover moving expenses quickly? A- Submit application for a housing voucher B- Find an individual landlord and negotiate C- Save for the move instead of paying utilities D- Apply for a loan to cover expenses - ANSWER Find an individual landlord and negotiate Which type of lease and tenancy best protects the tenant? A- An oral lease with tenancy at will B- A written lease with contractual tenancy C- A written lease with tenancy at will D- An oral lease with tenancy at sufferance - ANSWER A written lease with contractual tenancy The client wants to purchase a new home, but her lease might expire before she can move into it. Which is the best advice for the housing counselor to provide? A- Discuss a tenancy-at-sufferance agreement with the current landlord B- Stay in her current unit until the landlord evicts her C- Find a seller who will allow her to move in before closing D- Contact local Public Housing Agencies - ANSWER A- Discuss a tenancy atsufferance agreement with the current landlord Which tactic would be most effective for the client to encourage a positive landlord- tenant experience during a tenant initiated early lease termination? A- Stop paying rent immediately B- Request return of the security deposit C- Leave furniture for an incoming tenant D- Communicate well with the landlord - ANSWER D- Communicate well with the landlord Which additional information would the housing counselor need to prepare the action plan for this client? A- Documentation of life insurance payout B- Client's current lease agreement C- Documentation of household expenses D- Listings for properties the client is interested in purchasing - ANSWER Documentation of household expenses Which is the best recommendation the housing counselor should give this client to help improve her credit score? A- Set up automatic credit card and loan payments to ensure on time payment B- Apply for a loan to consolidate the credit card and auto loan balances C- Apply for a credit card with a lower interest rate and transfer the balance of the current card D- Pay more than the minimum payment each month to reduce the credit card balance - ANSWER D- Pay more than the minimum payment each month to reduce the credit card balance Which factor would most likely impact the client's housing affordability in the future? A- A reduction in income when the survivor benefit runs out when children turn 18 B- The need for a second car when the children start to drive C- Selecting a 30-year fixed rate mortgage versus a 15-year fixed rate mortgage D- The cost of home repairs and maintenance - ANSWER A- A reduction in income when the survivor benefit runs out when children turn 18 The client currently pays $2,050 in rent, though her mortgage payment could be higher. Which is the most effective strategy to be able to manage a higher payment? A- Withdraw retirement account funds to pay down car and credit card balances B- Delay home purchase until the car loan is paid off C- Consolidate car loan and credit card balances D- Utilize savings to pay the mortgage in the future - ANSWER B- Delay home purchase until the car loan is paid off Which was instituted by Congress to better protect home-buyers following the most recent housing crisis? A- Federal Trade Commission B- National Mortgage Settlement C- Consumer Finance Protection Bureau D- Truth In Lending Act - ANSWER C- Consumer Finance Protection Bureau Which initiative encourages housing counseling agencies to advocate that lenders operate in underserved areas? A- Affirmatively Furthering Fair Housing B- Fair Housing Initiatives Program C- Fair Housing Testing Program D- Fair Housing Assistance Program - ANSWER A- Affirmatively Furthering Fair Housing Which action taken by a housing counseling agency would affirmatively further fair housing? A- Report potential violations to the local fair housing authority B- Create an outreach campaign designed to raise awareness about critical housing topics C- Accompany clients when viewing properties to ensure they are treated fairly D- Discourage tenants from seeking housing with landlords who appear to consistently engage in discriminatory practices - ANSWER B- Create an outreach campaign designed to raise awareness about critical housing topics Which section of a credit report shows a client's payment history? - ANSWER Account information Which is the maximum payment (rounded to the nearest dollar) for principal, interest, taxes, insurance, and association fees (PITIA) this client can afford according to FHA back-end ratio guidelines? Assets, $58200, Total Gross Monthly In