Exam (elaborations)
HUD HOUSING COUNSELOR CERTIFICATION PRACTICE QUESTIONS AND ANSWER 2024
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HUD HOUSING COUNSELOR CERTIFICATION PRACTICE QUESTIONS AND ANSWER 2024
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HUD HOUSING COUNSELORCERTIFICATION PRACTICE
The client's loan application was recently denied, and her credit report shows an
outstanding debt that was discharged in her Chapter 7 bankruptcy filing. Which
federal law protects the client in this situation?
A- Fair and Accurate Credit Transactions Act (FACTA)
B- Fair Credit Billing Act (FCBA)
C- Equal Credit Opportunity Act (ECOA)
D- Fair Credit Reporting Act (FCRA) - ANSWERS-D- Fair Credit Reporting Act (FCRA)
NOTE: The Fair Credit Reporting Act allows consumers to dispute inaccurate
information on their credit reports. Each of the other regulations offers some
protection for consumers, but none applies to this situation.
Reference: Module 1.2 Credit
Page Number 16 to 17
Which situation most likely indicates a loan modification scam?
A- The client receives a letter from a housing counseling agency explaining
possible workout options
B- The client receives a letter from a company guaranteeing a loan modification
,C- The client's lender defers some principal so monthly payments are reduced
D- The client's lender offers to reinstate the loan by establishing an affordable
monthly payment plan - ANSWERS-A- The client receives a letter from a housing
counseling agency explaining possible workout options
Housing counselors should refer clients to other agencies when they seek which
type of
advice?
A- Advice on where to look for affordable housing
B- Advice on where to find emergency rental assistance
C- Advice on suing their landlord
D- Advice on whether they might be eligible for a reasonable accommodation -
ANSWERS-C- Advice on suing their landlord
NOTE: Housing counselors should refer clients to legal aid providers when clients
need legal advice. Housing counselors are expected to provide advice on what
might qualify as a reasonable accommodation and where to find affordable
housing and rental assistance.
Reference: Module 6.2 Eviction
Page Number 13 to 13
he client earns $3,000 in wages per month and will receive $700 per month in
child support, once an agreement is finalized, has $2,000 in savings. She wants to
by within 6 months, and plans to obtain FHA financing, which requires a 3.5%
,down payment, the average price of homes in the area is $100,000. She qualifies
for a local down payment assistance program which pays for closing costs and
prepaid expenses up to $4,000. She had a Chapter 7 bankruptcy discharged
successfully 18 months ago, and she recently paid off an auto loan and student
loans, her credit score is 620, her lease expires in two months, but
the property manager will allow for a six-month lease extension. Which aspect of
this client's situation requires her to wait six months before she can purchase a
home?
A- The client's current housing ratio is 36%.
B- The client's credit score is 620.
C- The client's child support cannot be counted as income unti - ANSWERS-D- The
client's bankruptcy was discharged 18 months ago.
NOTE: The client's credit score of 620 could qualify her for a mortgage, and her
rental housing ratio is not a determining factor for mortgage qualification.
Typically, in order to qualify for a mortgage, the client's Chapter 7 bankruptcy
must have been discharged for at least two years, and she needs to save enough
money for down payment and closing costs. The client has two months left on her
lease and seeks a six-month extension. There is no indication that it will take
longer than eight months after the divorce for the child support to be finalized, so
it can be counted as income.
Reference: Module 1.4 Protecting Assets
Page Number 11 to 18
How much should a housing counselor recommend the client save in an
emergency fund?
, A- 2% of net income
B- 10% of net income
C- 1 to 2 months of living expenses
D- 3 to 6 months of living expenses - ANSWERS-D- 3 to 6 months of living
expenses
A client who is a single mother of two young children meets with a housing
counselor to create a spending
plan that helps her manage her finances better and improve her credit score. She
has been employed at her job for two years. She works 40 hours per week and
earns $12 per hour. She does not receive child support and her monthly income
barely covers her monthly expenses, so she is unable to save. She has one secured
credit card and $5,000 of bad debt, which has been in collection for three years.
She also has an
outstanding judgment for $1,800 from a previous landlord when she was evicted
three years ago. She has a credit score of 580. Due to her past credit history, she
is renting from a private landlord.
Which is the maximum amount that this client could afford for monthly rental
payment (rounded to the nearest dollar)? - ANSWERS-$624 per month
NOTE: An affordable rental payment should be no higher than 30% of client's
gross income.
$12/hr x 40 hrs per week equals $480/week multiplied by 52 weeks; divided by 12
months equals $2,080 monthly gross income; 30% of $2,080 equals $624
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