HUD Certification New 2025-2026
Questions And Answers DOWNLOAD
TO PASS!!!!!!!!
,Quiz :Which document is most important when working with a client to develop an
initial budget as part of a Client Action Plan?
Pay stub
Retirement plan statement List
of assets
Current lease - >Pay stub
=A client would like purchase a home within one year. The client is motivated to
increase household income as a way to save for a down payment and qualify for a loan.
Which is the best solution for the client to reach this goal?
Find a second job
Borrow from retirement fund
Sell major assets
Find a temporary job through a staffing service - >Find a second job
=A credit report may contain which information?
The number of accounts in collection status
A history of payments on an electric bill
Income history
Criminal record - >The number of accounts in collection status
=A credit report contains inaccurate information. Which action item should the
counselor include in the Client Action Plan?
-Attach a letter to mortgage applications explaining the inaccuracies.
-Investigate the reasons why the inaccuracies occurred to determine the responsible
party.
-Include a personal consumer statement on the credit report.
-File a dispute with the appropriate credit reporting agency. - >File a dispute with the
appropriate credit reporting agency.
=Six months ago a client left a job as a reporter to start a business in the retail
industry. To prepare to buy a house, the client closed credit card accounts and has
been using savings to pay down credit card debt and collections. The client
, has not been able to save much for a down payment with all the debt payments but
knows about an affordable home-ownership program that only requires a 1% down
payment with an FHA loan.
What might result from the client closing the credit card accounts?
-I - >It decreases credit utilization, causing a positive impact on the credit score.
=Which action would a client take to improve a credit score?
-Request to expunge public records
-Apply for new credit cards to increase credit
-Cancel all credit cards
-Pay delinquent accounts - >Pay delinquent accounts
=A client does not receive a written monthly statement from the credit card
company. Which credit law could this omission violate?
-Fair Credit Billing Act
-Fair Credit Reporting Act
-Fair Housing Act
-Fair and Accurate Credit Transactions Act - >Fair Credit Billing Act
=A client shopping for a mortgage loan presents a housing counselor with an offer
from a local mortgage lender. The interest rate on the offer is 7.5% for a 30-year fixed
rate mortgage with a 20% down payment required. The counselor reviews the client
file and determines the client's credit score is 725 and the client's total debt-to-
income ratio is 20%.
The client asks the housing counselor if the offer is a case of illegal predatory lending.
How should the housing counselor respond?
-"You hav - >"I am unable to determine whether the loan is predatory, but I suggest
you shop around with other lending sources."
=Which action should a counselor recommend a client take first after discovering
identity theft?
-File for a name change.
Questions And Answers DOWNLOAD
TO PASS!!!!!!!!
,Quiz :Which document is most important when working with a client to develop an
initial budget as part of a Client Action Plan?
Pay stub
Retirement plan statement List
of assets
Current lease - >Pay stub
=A client would like purchase a home within one year. The client is motivated to
increase household income as a way to save for a down payment and qualify for a loan.
Which is the best solution for the client to reach this goal?
Find a second job
Borrow from retirement fund
Sell major assets
Find a temporary job through a staffing service - >Find a second job
=A credit report may contain which information?
The number of accounts in collection status
A history of payments on an electric bill
Income history
Criminal record - >The number of accounts in collection status
=A credit report contains inaccurate information. Which action item should the
counselor include in the Client Action Plan?
-Attach a letter to mortgage applications explaining the inaccuracies.
-Investigate the reasons why the inaccuracies occurred to determine the responsible
party.
-Include a personal consumer statement on the credit report.
-File a dispute with the appropriate credit reporting agency. - >File a dispute with the
appropriate credit reporting agency.
=Six months ago a client left a job as a reporter to start a business in the retail
industry. To prepare to buy a house, the client closed credit card accounts and has
been using savings to pay down credit card debt and collections. The client
, has not been able to save much for a down payment with all the debt payments but
knows about an affordable home-ownership program that only requires a 1% down
payment with an FHA loan.
What might result from the client closing the credit card accounts?
-I - >It decreases credit utilization, causing a positive impact on the credit score.
=Which action would a client take to improve a credit score?
-Request to expunge public records
-Apply for new credit cards to increase credit
-Cancel all credit cards
-Pay delinquent accounts - >Pay delinquent accounts
=A client does not receive a written monthly statement from the credit card
company. Which credit law could this omission violate?
-Fair Credit Billing Act
-Fair Credit Reporting Act
-Fair Housing Act
-Fair and Accurate Credit Transactions Act - >Fair Credit Billing Act
=A client shopping for a mortgage loan presents a housing counselor with an offer
from a local mortgage lender. The interest rate on the offer is 7.5% for a 30-year fixed
rate mortgage with a 20% down payment required. The counselor reviews the client
file and determines the client's credit score is 725 and the client's total debt-to-
income ratio is 20%.
The client asks the housing counselor if the offer is a case of illegal predatory lending.
How should the housing counselor respond?
-"You hav - >"I am unable to determine whether the loan is predatory, but I suggest
you shop around with other lending sources."
=Which action should a counselor recommend a client take first after discovering
identity theft?
-File for a name change.
