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HUD Exam Prep Questions And Answers Rated
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Quiz :% Impact of Account Payment History on Credit Score - Answer :35%
portion of credit score based on the payment history of accounts, including
late payments, delinquencies, judgments, and liens
Quiz :% Impact of Amounts Owed on Accounts on Credit Score - Answer :30%
portion of score based on the ratio of total credit extended to the amount of
credit owed
Quiz :% Impact of Length of Credit History on Credit Score - Answer :15%
portion of score based don the overall length of credit history in the report, as
well as average age of accounts
Quiz :% Impact of Types of Credit Used on Credit Score - Answer :10%
portion of score based on the variety of accounts
Quiz :% Impact of New Credit on Credit Score - Answer :10%
portion of score based on the number of recent credit INQUIRIES
Quiz :1
...
1) All of the following would help a counselor develop a realistic
household budget, except:
A
...
Amount spent on groceries
C
...
Monthly cable bill - Answer :A
Quiz :1
...
2) All of the following are reasons why it is important for a client to
track income and expenses before finalizing a budget, except:
A
...

B
...

C
...

D
...
- Answer :C
Quiz :1
...
3) Which of the following is a "want" and not a "need"?
A
...
Car insurance
C
...
Rent - Answer :C
Quiz :1
...
4) All of the following are effective ways to decrease expenses,
except:
A
...
Cancel cable service
C
...
Conserve energy in the home - Answer :A
Quiz :1
...
5) All of the following are effective strategies to increase income,
except:
A
...
Teach yoga
C
...
Factor in an anticipated raise - Answer :D
Quiz :1
...
6) Rebecca's next appointment is with Ray, a client who recently
started a new job and wants to buy a car to cut down on his commute
...
He pays his
bills every month and covers his other expenses, but he never has any
money left for savings
...

A
...
Bank Statements - Answer :Used to determine budget: A, B, C, D
Not used to determine budget: E, F, G, H
Quiz :1
...
7) Ray's commute on the bus takes over an hour, so he wants to buy
a car as soon as possible, but he has poor credit and cannot obtain a loan right
now
...
If Ray's goal is to buy a car within 8
months, what is the minimum amount he needs to save each
month?
A
...
$175
C
...
$225 - Answer :C
Quiz :1
...
8) Rebecca helps determine that with adjustments Ray can set aside
$320 each month to buy

the car
...
At least 4
B
...
At least 6
D
...
2
...
Consumer rights
B
...
Personal information
D
...
Inquiries - Answer :C
Quiz :1
...
2) Which section of a credit report will contain information about a
student loan?
A
...
Public records
C
...
Consumer rights
E
...
2
...
Public records
B
...
Personal information
D
...
Account information - Answer :A
Quiz :1
...
4) Which section of a credit report will show recent attempts to open
a credit card?
A
...
Public records
C
...
Inquiries
E
...
2
...
Personal information

B
...
Public records
D
...
Account information - Answer :B
Quiz :1
...
6) Indicate which of the following concepts would generate a
positive effect on a credit report
and which would have a negative effect:
A
...
Filing for bankruptcy
C
...
High credit card balances - Answer :Positive Effect on Credit Report
ANegative Effect on Credit Report
B-C-D
Quiz :1
...
9) Place the letters in the correct sequence from the MOST
important factor to the LEAST important factor that impacts the determination
of a credit score
...
Amount of total credit used
B
...
History of delinquent payment
D
...
2
...
www
...
com
B
...
myfico
...
www
...
com
D
...
experian
...
2
...
Indicate
which credit regulation corresponds to the scenarios described
...

1
...

A
...
Fair Credit Billing Act (FCBA)
C
...
2
...
Indicate
which credit regulation corresponds to the scenarios described
...

___ 2
...

A
...
Fair Credit Billing Act (FCBA)
C
...
2
...
Indicate
which credit regulation corresponds to the scenarios described
...

___ 3
...

A
...
Fair Credit Billing Act (FCBA)
C
...
2
...
Indicate
which credit regulation corresponds to the scenarios described
...

___ 4
...

A
...
Fair Credit Billing Act (FCBA)
C
...
2
...
Indicate
which credit regulation corresponds to the scenarios described
...

___ 5
...

A
...
Fair Credit Billing Act (FCBA)
C
...
2
...
Ratio of total credit extended to the amount of
credit owed
A
...
Amounts Owed
C
...
Types of Credit Used
E
...
2
...
Variety of accounts (e
...
, credit card, auto loan,
mortgage)
A
...
Amounts Owed
C
...
Types of Credit Used
E
...
2
...
Number of recent credit inquiries, as well as new
credit accounts
A
...
Amounts Owed
C
...
Types of Credit Used
E
...
2
...
Overall length of credit history in the report, as
well as the average age of accounts
A
...
Amounts Owed
C
...
Types of Credit Used
E
...
2
...
Payment history of accounts, including late
payments, delinquencies, judgments, and liens
A
...
Amounts Owed
C
...
Types of Credit Used
E
...
2
...
Based on
the information provided match the issue with the corresponding section of
the FICO credit score
...
Roger has maxed out his credit card
...
Account History
B
...
Length of Credit History
D
...
New Credit - Answer :B
Quiz :1
...
8) The following client is having trouble obtaining credit
...
Molly is a recent college graduate trying to apply for her first credit card
...
Account History
B
...
Length of Credit History
D
...
New Credit - Answer :C
Quiz :1
...
8) The following client is having trouble obtaining credit
...
Kate's credit report displays several judgments and collection accounts
...
Account History
B
...
Length of Credit History
D
...
New Credit - Answer :A
Quiz :1
...
8) The following client is having trouble obtaining credit
...
Chris has three credit cards but no other accounts on his report
...
Account History

B
...
Length of Credit History
D
...
New Credit - Answer :D
Quiz :1
...
8) The following client is having trouble obtaining credit
...
April has applied for and received several credit
cards and loans in the past six months, talking with a
new lender each month
...
Account History
B
...
Length of Credit History
D
...
New Credit - Answer :E
Quiz :1
...
11) The following client needs to improve their credit
...

A
...

1
...

2
...

3
...

4
...
- Answer :2
Quiz :1
...
11) The following client needs to improve their credit
...

B
...

1
...

2
...

3
...

4
...
- Answer :3

Quiz :1
...
11) The following client needs to improve their credit
...

C
...

1
...

2
...

3
...

4
...
- Answer :4
Quiz :1
...
11) The following client needs to improve their credit
...

D
...

1
...

2
...

3
...

4
...
- Answer :1
Quiz :1
...
13) Which complies with fair credit laws?
A
...

B
...

C
...

D
...
- Answer
:B
Quiz :1
...
14) Which federal law protects a consumer's right to dispute a billing
error associated with his
or her credit card account?
A
...
Fair Credit Reporting Act (FCRA)
C
...
3
...

A
...
Stop Payment Fee

C
...
Service Fee - Answer :B
Quiz :1
...
2) Fee charged by a financial institution for account maintenance
...
Overdraft Fee
B
...
NSF Fee
D
...
3
...

A
...
Stop Payment Fee
C
...
Service Fee - Answer :A
Quiz :1
...
4) Fee charged if there is not enough money in an account to cover a
check payment or other purchase
...
Overdraft Fee
B
...
NSF Fee
D
...
3
...
Mobile Banking
B
...
Free Wire Transfers
D
...
3
...
Emergency funds can be used to cover living expenses while Jill looks for a
new job, if she is laid off
...
Emergency funds placed in a liquid account can be retrieved when needed
without taxes or penalties
...
Emergency funds will be available to use to purchase an electronic game for
her daughter when Jill finds a great sale
...
It is ultimately cheap - Answer :C

Quiz :1
...
8) Which is the most appropriate use of Jill's emergency funds?
A
...
Upgrading a refrigerator
C
...
Repairing the transmission on a car - Answer :D
Quiz :1
...
9) Indicate the expense best paid for with (A)emergency fund or (B)
short-term large purchase fund
...
3
...
Her company might "match" a portion of the retirement funds that she
contributes
...
She could benefit from certain tax incentives
...
She could borrow against the retirement investment if she has an immediate
need for cash
...
Her investment could grow more if she begins investing earlier
...
3
...
3?
A
...
How is he submitting his taxes?
C
...
What is his credit limit? - Answer :C
Quiz :1
...
12) Carlos has two children under the age
of three that attend daycare, makes minimum wage at his job, & has not taken
any courses beyond high school
...
Earned Income Tax Credit (EITC)
B
...
Educational Credit - Answer :C
Quiz :1
...
1) Steps to Protect against Identity Theft
A
...

B
...

C
...

D
...

E
...

F
...

G
...
4
...
Initiate a fraud alert
...
Shred financial documents
...
Cancel credit cards and order new bank cards
...
File a police report
...
Review bank and credit card statements
...
Contact the FTC
...
Safeguard personal identity information - Answer :A-C-D-F
Quiz :1
...
2) All of the following are immediate steps a client should take in the
event of identity theft, except:
A
...

B
...

C
...

D
...
- Answer :B
Quiz :1
...
3) In some cases, bankruptcy may be the best option for a client
...
Debt management plan (DMP)
B
...
Loan modification
D
...
Wait seven years for accounts to drop from credit report - Answer :E
Quiz :1
...
4) Which feature belongs with Chapter 7 bankruptcy
1
...
Allows clients to retain certain secured debts, such as a house or car
3
...
Requires a means test
5
...
May be a requirement for a client with regular income - Answer :1-4-5
note: Ch
...
4
...
Liquidation of assets
2
...
Involves a repayment plan
4
...
May be a better option for a client with no assets
6
...
13 AKA wage earners plan
Quiz :1
...
5) It is the responsibility of the counselor to determine whether or
not a client should file
bankruptcy
...
True
B
...
4
...

__ 1
...
Discussion about Predatory Lending
B
...
Discussion about Identity Theft

D
...
4
...

___ 2
...
Discussion about Predatory Lending
B
...
Discussion about Identity Theft
D
...
4
...

___ 3
...
Discussion about Predatory Lending
B
...
Discussion about Identity Theft
D
...
4
...

___ 4
...
Discussion about Predatory Lending
B
...
Discussion about Identity Theft
D
...
4
...

___ 5
...
Discussion about Predatory Lending
B
...
Discussion about Identity Theft

D
...
1
...

Mark "A" for renting and "B" for buying
...
Bob is averse to financial risks
...
Jan has saved a significant amount of money in order to comfortably pay
a down payment and closing costs
...
Jenny really enjoys interior design and would like to make her home
exactly how she wants it
...
Rachel takes great satisfaction in doing her own home repairs
...
Jimmy has a nine-month contract with his current job
...
1
...
$1,000
B
...
$7,000
D
...

-You must be billed in a timely manner
...

-You have the right to place a fraud alert on your credit file
...

Quiz :Closing Costs average between _______ of the home purchase price
...
1
...
Renters generally pay a security deposit upon signing a lease
...
The average cost due upon signing a lease for a rental is typically 20% of the
monthly rent
...
Closing costs are typically comprised of lender fees, discount points, title
insurance, home inspection fees, escrow deposit, property taxes, private
mortgage insurance, and attorney's fees
...
A client who desires to purchas - Answer :B
Quiz :What is the affordable Front-End Ratio for conventional loan? - Answer
:28%
Quiz :What is the Back-End Ratio for conventional loan to qualify for a
mortgage? - Answer :36%
Quiz :What is the affordable Front-End Ratio for FHA loan? - Answer :31%
Quiz :What is the Back-End Ratio for FHA loan to qualify for a mortgage? Answer :43%
Quiz :What is the affordable Front-End Ratio for renters? - Answer :30%
Quiz :What is the maximum Back-End Ratio for FHA Energy Efficient
Mortgage? - Answer :45%

Quiz :Formula for Front-End Ratio - Answer := Monthly Housing
Expenses/Gross Monthly Income
Quiz :What are Monthly Housing Expenses? - Answer :Principle
Interest
Taxes
Insurance
Association dues
Quiz :2
...
4) A couple, the Smiths, recently scheduled a meeting with Rebecca
...
However, they are now struggling to pay their mortgage,
because the wife left her full-time job when she had a baby
...
Each month, they pay $1,000 in principal and interest,
$110 for taxes, $130 for insurance, and $20 in hom - Answer :A
Quiz :2
...
5) Husband's salary is paid in installments of $900 a week, which are
subject to deductions and other withholdings
...
If the Smiths decide to do this, they will no longer
have a mortgage, so what is the maximum amount that they can afford to pay
in rent and renters insurance each month?
A
...
$1,092
C
...
$1,170 - Answer :D
Quiz :2
...
6) husband 's salary is paid in installments of $900 a week, which are
subject to deductions and other withholdings
...
$870
B
...
$1,152
D
...
1
...
It would cost them $990 each month in PITIA
...
1
...
50%
B
...
43%
D
...
Debt-to-Income
Quiz :2
...
9) If the Smiths decide to apply for a new loan to buy the more
affordable home, which would support the approval of their application?
A
...
Poor credit history
C
...
High gross annual income - Answer :D
Quiz :2
...
1) Sample Credit Ranges:
Excellent: 720+ | Good: 660-719 | Fair: 620-659
Poor: 619 and below
___ 1
...
She plans to keep some savings in reserves
and has identified additional funds to cover closing
costs
...

Select the best loan option to finance home purchase for the client
...
VA
B
...
FHA

D
...
2
...
Client 2 has $2,500 in savings and a credit score of
690
...
Client would like to buy a
$100,000 home and is steadily employed
...

A
...
USDA
C
...
Conventional - Answer :C
Quiz :2
...
1) Sample Credit Ranges:
Excellent: 720+ | Good: 660-719 | Fair: 620-659
Poor: 619 and below
___ 3
...
She is on
active duty with the Army
...
Select the best loan option to finance home purchase for
the client
...
VA
B
...
FHA
D
...
2
...
Client 4 has $2,000 in savings and a credit score of 600
...
He lives in a small,
rural town and would like to buy a farm
...
Select the best loan option to finance home
purchase for the client
...
VA
B
...
FHA
D
...
2
...
All of the following would be accurate and
applicable information for his counselor to share with him, except:
A
...

B
...

C
...

D
...
- Answer
:B
Quiz :2
...
3) Sara is almost ready to purchase her first home
...
She has saved $10,000 and is looking to purchase a home for $150,000
...
Almost 6% of her monthly income goes to paying her student loans
...
Her credit score is 577 due to several collection accounts
...
Her debt-to-income ratio is 33%
...
2
...
It protects the borrower in case of default due to job loss
...
It can be used for FHA mortgages
...
It always includes an upfront premium and monthly charge
...
It protects the lender in case the borrower defaults
...
2
...
When the mortgage balance is 90% of the original value of the home
...
When the mortgage balance is 80% of the original value of the home
...
When the mortgage balance is 78% of the original value of the home
...
When the mortgage balance is 60% of the original value of the home
...
2
...
Moves due to changes in family size or job location are allowed
...
Landlords cannot provide unsanitary housing or charge a high rent
...
Vouchers are provided to participants directly from the local HUD office
...
Elderly renters can participate in the program
...
1
...
Residential security restrictions
B
...
Redlined Maps
D
...
1
...
Securitizing
B
...
Predatory lending
D
...
1
...
Martin Luther King, Jr
...
Executive Order 11063
B
...
Civil Rights Act of 1964
D
...
1
...
5
B
...
8
D
...
1
...
A landlord imposes a higher security deposit on a family with two
children, even though the family otherwise meets the criteria for tenancy,
income, and credit history
A
...
Race
C
...
Disability
E
...
Color
G
...
1
...
A lender only offers adjustable rate mortgages with steep interest rates
to Afghanis, but this same lender offers more flexible financing to all other loan
applicants
...
Familial Status
B
...
Religion
D
...
Sex
F
...
National Origin - Answer :G
Quiz :3
...
5) Which protected characteristic is being discriminated against
___ 3
...

A
...
Race
C
...
Disability
E
...
Color
G
...
1
...
A landlord charges female tenant applicants a higher security deposit
than male applicants
A
...
Race
C
...
Disability
E
...
Color
G
...
1
...
A property manager provides a rental unit of inferior quality to a man
with a beard, which is kept to adhere to spiritual believes
...
Familial Status
B
...
Religion
D
...
Sex
F
...
National Origin - Answer :C
Quiz :3
...
5) Which protected characteristic is being discriminated against
___ 6
...
Familial Status
B
...
Religion
D
...
Sex
F
...
National Origin - Answer :D
Quiz :3
...
5) Which protected characteristic is being discriminated against

___ 7
...
Familial Status
B
...
Religion
D
...
Sex
F
...
National Origin - Answer :F
Quiz :3
...
6) Below is a list of scenarios
...

___ 1
...

___ 2
...

___ 3
...
1
...

A
...
Accessibility modification
C
...
Accessibility accommodation - Answer :C
Quiz :3
...
8) The following situation is an example of what type of change? A
housing provider has a policy of requiring tenants to come to the rental office

to pay their rent
...

A
...
Accessibility modification
C
...
Accessibility accommodation - Answer :A
Quiz :3
...
9) Below is a list of scenarios
...

___ 1
...
Making housing that is operated by a religious organization unavailable
to those who are not members of the religious organization
___ 3
...
1
...
Refusing to provide information regarding loans
B
...
Suggesting that a potential client review information about all different loan
types
D
...
1
...
Place an "A" next to scenarios that
correspond with Prohibited Practice and a "B" next to scenarios corresponding
with Legal Practice
...
A mortgage lender denies a home loan to an applicant with a disability
because his credit score is too low and approves an applicant without a
disability that has a higher credit score
...
A home insurance company offers a female applicant that needs
provisions for flood insurance a more expensive policy than a mal - Answer :1B
2- B

3- A
4- A
Quiz :3
...
1) Which HUD program provides annual funding to state and local
agencies that enforce fair housing laws that are substantially equivalent to the
Fair Housing Act? These funds go toward an agency's capacity building,
administrative costs, investigative and enforcement efforts, training, and other
projects designed to support enforcement of fair housing laws
...
Fair Housing Initiatives Program (FHIP)
B
...
2
...
Fair Housing Initiatives Program (FHIP)
B
...
2
...
HUD interviews the complainant; the respondent
and pertinent witnesses; collects relevant documents
and/or conducts site visits; and continually offers and
engages conciliation
...
Intake
B
...
Investigation
D
...
2
...
After a complainant submits a complaint, an intake
specialist reviews the information to determine if the
allegation involves a possible violation of Fair Housing
Act and is within HUD's jurisdiction

A
...
Filing
C
...
Pre-determination Conciliation - Answer :A
Quiz :3
...
3) Select which phase of the investigation and charge process is
described below:
___ 3
...
Intake
B
...
Investigation
D
...
2
...
HUD sends a notification to the aggrieved person
acknowledging the filing and advising the aggrieved
person of the time limits and choices; sends a notice
to the respondent, no later than 10 days of when the
official complaint is filed; and assigns the complaint for
investigation by HUD or refers the complaint to state or
local proceedings
...
Intake
B
...
Investigation
D
...
2
...
Issue an order for relief if it is found that an organization has engaged, or is
about to engage, in a discriminatory housing practice
...
Strategically market available housing to persons less likely to apply
...
Examine its programs or proposed programs and identify any impediments
to fair housing choice within those programs
...
Pursue af - Answer :A
Quiz :3
...
5) Which aims to identify groups of people who would benefit most
if targeted by the campaign, the characteristics of these people, and their
expectations?
A
...
HUD-funded program
C
...
2
...
Marketing analysis
B
...
Networking event - Answer :C
Quiz :3
...
7) To assist clients who may utilize them, housing counselors should
research AFFH rules for which of the following?
A
...
HUD-funded program
C
...

Quiz :HOLC - Answer :Home Owners' Loan Corporation in 1933 to refinance
mortgages in default to prevent foreclosure
...
Partly responsible for redlining
...
Hourly
2
...
Bi-weekly
4
...
Self employed - Answer :1- (pay x #hrs x 52wks)/12months
2- (pay x 52wks)/12months
3- (pay x 26)/12
4- pay x 2
5- Tax Return AGI /12months
Quiz :The 4C's of Credit refer to: - Answer :Character
Capacity
Capital
Collateral
Quiz :Under 4C's of Credit, what is Character? - Answer :credit history
employment history
housing stability
Quiz :Under 4C's of Credit, what is Capacity? - Answer :Consistency of
employment & income
Adequacy of income to repay debt
Recurring debts
Frequency & type of wages
Quiz :Under 4C's of Credit, what is Capital? - Answer :Deposit or Down
Payment
Quiz :Under 4C's of Credit, what is Collateral? - Answer :Property or Assets
Quiz :Types of Mortgage Loans - Answer :1
...
Subprime Mortgage Loans
-for borrowers with poor credit
-high interest rates & monthly mortgage payment
3
...

- Have funds for a down payment (typically 20% of the purchase price) and
closing costs
...

Quiz :Subprime mortgage is good for those who: - Answer :- Have a poor
credit history
...

Quiz :FHA-insured mortgages may be good for those who: - Answer :- Have
limited funds for down payment & closing costs
- May not qualify for a conventional mortgage loan due to flawed credit
history, bankruptcy, or high debt-to-income ratios
...

- Have suitable credit and sufficient income
...

Quiz :USDA mortgage issued by private lender may be a good fit for those
who: - Answer :- Want to live in eligible rural areas, as defined by the USDA
...

- May not have funds for a down payment
...

- Loan terms can go up to 33 years, though exceptions allow for loan terms up
to 38 years if certain income criteria apply
Quiz :Fixed rate mortgage - Answer :typically paid off in 30 years, has an
interest rate that does not fluctuate
...

You can count on your payments being the same for the next 30 years
...
Interest rates can increase or decrease when
they are adjusted, but there are caps on how large an adjustment can be
...
5% & can be gifted
LTV 96
...
580, mostly 640
Grant/subsidy is allowed
Quiz :Overview of VA mortgage loans - Answer :Back-end Ratio 43%
Guaranty Fee (mortgage ins
...
) financed into loan +
annual premium
Non-traditional credit accepted
Down payment 0%
LTV 100%
Credit Score min 600
Grant/subsidy is allowed

Income Req: 115% of area median income or 80%
for USDA direct loan
Quiz :Overview of Conventional mortgage loans - Answer :Back-end Ratio 36%
Mortgage Insurance for low down-payment
Non-traditional credit rare
Down payment 3-20%
LTV 100%
Credit Score min 640-680
Grant/subsidy some programs
Job History/Income stringent
Quiz :PMI vs
...
2
...
If a client does not
qualify, place a "B
...
Client 1 is married with one child, makes $46,000 a year, and has a
credit score of 600
...
2
...
If a client does not
qualify, place a "B
...
Client 2 is not married and has no children, makes $40,000 a year, and
has a credit score of 650
...
2
...
If a client does not
qualify, place a "B
...
Client 3 is married with two children, makes $50,000 a year, and has a
credit score of 640
...
2
...
If a client does not
qualify, place a "B
...
Client 4 wants to buy an investment property - Answer :B
Quiz :4
...
1) Determine if the following client descriptions indicate whether the
client is ready to buy a home or may not be ready to buy a home
...
Ready to buy a home
B
...
Is interested in learning how to do home
repairs - Answer :A
Quiz :4
...
1) Determine if the following client descriptions indicate whether the
client is ready to buy a home or may not be ready to buy a home
...
Ready to buy a home

B
...
May need to relocate to live closer to an
aging parent in the next year or two - Answer :B
Quiz :4
...
1) Determine if the following client descriptions indicate whether the
client is ready to buy a home or may not be ready to buy a home
...
Ready to buy a home
B
...
Earns an annual gross income of $26,000
in a region where the average home price
is $108,000 - Answer :B
Quiz :4
...
1) Determine if the following client descriptions indicate whether the
client is ready to buy a home or may not be ready to buy a home
...
Ready to buy a home
B
...
Paid bills late four times in the last year - Answer :B
Quiz :4
...
1) Determine if the following client descriptions indicate whether the
client is ready to buy a home or may not be ready to buy a home
...
Ready to buy a home
B
...
Earns an annual gross income of $39,000 in a region where the average
home price is $98,000 - Answer :A
Quiz :4
...
1) Determine if the following client descriptions indicate whether the
client is ready to buy a home or may not be ready to buy a home
...
Ready to buy a home
B
...
Has credit score of 700 - Answer :A
Quiz :4
...
1) Determine if the following client descriptions indicate whether the
client is ready to buy a home or may not be ready to buy a home
...
Ready to buy a home
B
...
Changed jobs three times over the past two years, switching from
administrative services to customer service to retail - Answer :B
Quiz :4
...
2) Which factor is best for housing counselors to use when
determining how much a client can afford to spend on purchasing a home?
A
...
Annual gross income
C
...
Options A, B, and C
E
...
1
...
Home Inspector
B
...
Assessor
D
...
Lender
___ 1
...
"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
...
1
...
Home Inspector
B
...
Assessor
D
...
Lender
___ 2
...
- Answer :C
Quiz :4
...
3) Match the homebuying team member
A
...
Underwriter
C
...
Appraiser
E
...
A professional who conducts an inspection of the
home's structure and mechanical systems to determine
quality, soundness, and safety
...
1
...
Home Inspector
B
...
Assessor
D
...
Lender
___ 4
...
- Answer :B
Quiz :4
...
3) Match the homebuying team member
A
...
Underwriter
C
...
Appraiser
E
...
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
...
- Answer :D
Quiz :4
...
4) Which statement most accurately describes a member of the
homebuying team?
A
...
S/he oversees the final transaction in property purchase, at which
time the title is transferred from the seller to the buyer
...
The lender requires an assessment of the home by a home inspector before
loan approval
...
An insurance agent is also known as a settlement agent
...
A home inspector is generally paid by the bu - Answer :D
Quiz :Earnest Money - Answer :When buyers and sellers reach an agreement
on a price and terms of the deal, the buyers
will give the sellers a check with earnest money
...
The amount offered typically
ranges by
region, from as low as 1% of the sales price to as high as 10%, and can be
negotiated
...
This charge is paid
at the closing and varies with the lender and type
of loan
...

Quiz :Discount Points - Answer :A type of pre-paid interest normally paid at
closing and generally calculated to be equivalent to 1% of the total loan
amount
...
You
can
purchase a lender-determined number of discount
points to give you a lower rate and lower monthly
mortgage payment
...
1
...
Never speak with lenders before settling on a home
...
Have all potential lenders pull credit within a 30-day window
...
Mortgages with adjustable rates are always best
...
Choose whichever lender is most prompt in returning your phone calls
...
g
...

Quiz :What is in the Property Information section of the URLA - Answer
:Information such as property address, year built, number of units, and
property type
...

Quiz :What is in the Income Information section of the URLA - Answer
:Information such as income from employment, social security benefits,
dividends, and child
support
...

Quiz :What is in the Asset Information section of the URLA - Answer
:Information such as deposit, bank account information, investments,
retirement funds, and
vehicles
...

Quiz :What is in the Signatures section of the URLA - Answer :Signatures of
clients must be provided in two places
...
The signature at
the bottom
acknowledges that the information provided on the loan application is correct
...

Quiz :4
...
6) Which information is required to complete the URLA? You may
select more than one answer
...
Figures related to income from child support
B
...
Year home was built
D
...
1
...
It is improper for an appraiser to consider the racial or religious background
of a neighborhood's residents to determine the value of a home
...
Lenders hire appraisers
...
Homebuyers can cancel the offer contract if the contract includes a
contingency clause
...
Homebuyers rarely are allowed to see the appraisal information and for that
reason ar - Answer :D
Quiz :ATR/QM - Answer :Ability to Repay / Qualified Mortgage
Quiz :RESPA = Real Estate Settlement Procedures Act - Answer :Federal law
prohibiting certain abusive practices that increase the cost of settlement
services
...
In addition, a person cannot give or receive
anything for settlement business referrals or for services that are not
performed
...

Quiz :TILA = Truth in Lending Act - Answer :Federal law requiring that lender
disclose important information to borrowers on conditions and terms of credit,
including APR, monthly payment, total finance charge, pre-penalty info
To protect consumers against inaccurate and unfair loan billing and credit card
practices, it requires lenders to provide consumers with loan cost information
so that they can comparison shop
...
Certain creditors, such as nonprofits serving low-tomoderate income consumers, are exempt from ATR requirements
...


Quiz :TRID = TILA-RESPA Integrated Disclosure Rule - Answer :Federal law
amending regulations under RESPA (Regulation X) and TILA (Regulation Z),
effective as of October 3, 2015
...
forms = Loan Estimate & Closing
Disclosure
Quiz :HOEPA = Home Ownership and Equity Protections Act - Answer :Federal
law enforcing special disclosure requirements and restrictions on terms for
loans
that meet high-cost mortgage tests
...
In addition
new restrictions were put in place to disallow certain loan features & practices
that led to past abuses
...
1
...
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
...
URLA
B
...
Loan Estimate
D
...
1
...
Four of the five lenders quoted
interest rates between 4
...
6%
...
1% interest
rate if she signed for it within the next 36 hours
...
g
...
The lender provided some information about the loan,
but nothing included the APR
...
ECOA
B
...
TILA
D
...

Form Includes : Loan terms, closing costs, adjustable interest rate & payment
table if applicable, contact info
Quiz :Closing Disclosure - Answer :According to TRID this new form must be
provided to consumers at least 3-business days before closing
...
1
...
The appraisers give the mortgage company $100 for every
one of its clients who comes to them
...
ECOA
B
...
TILA
D
...
1
...
When
she asked for the reason, she was told that the lender had given loans to
women her age in the past and no longer would
...

Which regulation deems this practice unlawful?
A
...
RESPA
C
...
HOEPA - Answer :A
Quiz :What two HUD-prepared pamphlets on home inspection must be
provided to customers in housing counseling session or homebuyer education
workshop - Answer :1- For Your Protection Get a Home Inspection
2- 10 Questions to Ask a Home Inspector

Quiz :4
...
12) All of the following would be a good idea for clients to do during
the process of obtaining financing, except:
A
...

B
...

C
...

D

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