HUD Certification Exam Questions and Answers (2024 Update), Exams of Nursing

Download HUD Certification Exam Questions and Answers (2024 Update) and more Exams Nursing in PDF only on Docsity! HUD Certification Exam Questions and Answers (latest Update 2024) Deed Restrictions - Correct Answer ✅Legally enforceable terms that govern the use of real estate Redlining - Correct Answer ✅The practice of refusing to make residential loans or imposing more onerous terms on any loans made because of the predominant race, color, national origin, religion, sex, disability, or familial status of the area's residents. Civil Rights Act of 1968 - Correct Answer ✅Following the assassination of Dr. Martin Luther King Jr., Congress passed what monumental piece of legislation, which prohibits discrimination in housing sales, rentals, and financing based on race, color, national origin, religion, sex, disability and familial status? 7 - Correct Answer ✅The Fair Housing Act, as amended, protects how many characteristics? Reasonable Modification - Correct Answer ✅A property manager of an apartment complex that receives federal HUD Certification Exam Questions and Answers (latest Update 2024) financial assistance installs a ramp so that a tenant in a wheelchair can easily access her first-floor apartment. Reasonable Accommodation - Correct Answer ✅Housing provider has a policy of requiring tenants to come to the rental office to pay their rent. A tenant with a mental disability, who is afraid to leave her unit, is allowed to mail her rent payment. True - Correct Answer ✅The Fair Housing Act does not prohibit a lender from showing potential clients information about different loans. Fair Housing Assistance Program (FHAP) - Correct Answer ✅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 towards an agency's capacity building, administrative costs, investigative and enforcement efforts, training and other projects designed to support enforcement of fair housing law. HUD Certification Exam Questions and Answers (latest Update 2024) Types of Credit - Correct Answer ✅Credit: Variety of accounts (e.g. credit card, auto loan, mortgage) New Credit - Correct Answer ✅Credit: Number of recent credit inquiries, as well as new credit accounts. AnnualCreditReport.com - Correct Answer ✅Where does a client go to get a free credit report? Fair Credit Reporting Act (FCRA) - Correct Answer ✅You have the right to dispute information in your credit file that is incomplete, inaccurate, or unverifiable. Fair and Accurate Credit Transactions Act (FACTA) - Correct Answer ✅You have the right to a free annual credit report. Fair and Accurate Credit Transactions Act (FACTA) - Correct Answer ✅You have the right to place a fraud alert on your credit file. HUD Certification Exam Questions and Answers (latest Update 2024) Fair Credit Reporting Act (FCRA) - Correct Answer ✅You have the right to know what is in your credit file. Fair Credit Billing Act (FCBA) - Correct Answer ✅Which federal law protects a consumer's right to dispute a billing error associated with his/her credit card account. Fair Credit Reporting Act (FCRA) - Correct Answer ✅What act limits employers access to persons credit report. Wire Transfer Fee - Correct Answer ✅Fee charged when a client sends a payment to another account electronically through electronic funds transfer (EFT) Overdraft Fee - Correct Answer ✅Fee charged when an account doesn't have money to cover a purchase and the financial institution loans money to complete the payment. Stop Payment Fee - Correct Answer ✅Fee charged to invalidate a check before it is cashed. HUD Certification Exam Questions and Answers (latest Update 2024) NSF Fee - Correct Answer ✅Fee charged if there is not enough money in an account to cover a check payment of other purchase. CD; Money Market; High-Interest Account - Correct Answer ✅Examples of accounts that would be ideal for short-term large purchase savings Renters Insurance - Correct Answer ✅An insurance policy that provides coverage for damages, within a rental property, to renters' belongings and liability. Discount Points - Correct Answer ✅A type of pre-paid interest normally paid at closing and generally calculated to be equivalent to 1% of the total loan amount Default - Correct Answer ✅The inability to make timely payments or fulfill legal obligations of loan terms. Equity - Correct Answer ✅Value of ownership interest in property. HUD Certification Exam Questions and Answers (latest Update 2024) Association Dues - Correct Answer ✅Charged by community or Homeowners Association to pay for repairs, upkeep, landscaping, improvements and property management. Adjusted Gross Income - Correct 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. Profit and Loss Statments - Correct Answer ✅A summary of revenue, costs, and expenses incurred during a defined period, such as a fiscal year. Back-End Ratio - Correct Answer ✅A rate that calculates a borrower's total monthly debt, including housing and other debt obligations, as a percentage of gross monthly income. Character - Correct Answer ✅Credit history, employment history, and housing stability to determine the likeliness that the borrower will repay their debts HUD Certification Exam Questions and Answers (latest Update 2024) Capacity - Correct Answer ✅Lender considers consistency of employment and income, adequacy of income to repay debt, recurring debts and frequency and type of wages Capital - Correct Answer ✅Lenders inquire about how much money a borrower has saved to pay a deposit or down payment for the home intended to purchase. Collateral - Correct Answer ✅Lenders often request a borrower to pledge specific property or assets as collateral to secure repayment of loan. Front-end ratio for obtaining a conventional loan - Correct Answer ✅28% Front-end ratio for obtaining an FHA loan - Correct Answer ✅31% Affordable front-end ratio for renters - Correct Answer ✅30% HUD Certification Exam Questions and Answers (latest Update 2024) Per FHA, you are considered self-employed if you have ___% or greater ownership interest in a business. - Correct Answer ✅25% Subprime Mortgage Loans - Correct Answer ✅A type of mortgage with less stringent lending and underwriting terms and conditions, usually offered to borrowers with blemished or limited credit histories. Type of mortgage that is a good fit for those that have limited funds for a down payment and closing costs - Correct Answer ✅FHA Mortgage Type of loan that may be a good fit for those that have a poor credit history and/or are ineligible for other loans - Correct Answer ✅Subprime Mortgage Loan Type of mortgage may be a good fit for eligible veterans, suitable credit and sufficient income and have a certificate of eligibility. - Correct Answer ✅VA Loan HUD Certification Exam Questions and Answers (latest Update 2024) Public Housing Agencies - Correct Answer ✅A state, county, municipality, or other government agency that develops or operates low-income housing. Fair Market Rent - Correct Answer ✅A determination of the monthly rent of a rental property, calculated by HUD. Factored by geography and unit size, sets payment standards for public housing programs Housing Choice Voucher - Correct Answer ✅Commonly referred to as Section 8; distributed locally by PHAs where you are free to choose any housing that meets program requirements Project Based Voucher - Correct Answer ✅Allows PHAs to allocate up to 20% of its housing choice vouchers for project- based vouchers attached to specific housing units If client has a project based voucher and moves out of the unit, do they lose the voucher assitance? - Correct Answer ✅Yes HUD Certification Exam Questions and Answers (latest Update 2024) What is the purpose for the Veterans Affairs Supportive Housing (VASH) program - Correct Answer ✅To end veterans homelessness What is the purpose of the Housing Opportunities for Persons with AIDS (HOPWA) program - Correct Answer ✅To assist with housing needs of people living with HIV/AIDS Pre-Approval - Correct Answer ✅When a lender commits to lend a fixed loan amount based on review of completed loan application, credit reports, debt, savings and a review by an underwriter. Balloon Payments - Correct Answer ✅An oversize payment due at the end of a mortgage Pre-Payment Penalty - Correct Answer ✅A provision in some loans that charges a fee to a borrower who makes mortgage payments ahead of schedule. HUD Certification Exam Questions and Answers (latest Update 2024) Equal Credit Opportunity Act (ECOA) - Correct Answer ✅Requires lenders to make credit available equally without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income form public assistance programs Real Estate Settlement Procedures Act (RESPA) - Correct Answer ✅Prohibits certain abusive practices that increase the cost of settlement services. Requires mortgage transaction disclosures that describe closing costs, lender servicing and escrow account practices, and business relationships Truth in Lending Act (TILA) - Correct Answer ✅Requires lenders disclose important information 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. Know Before you Owe (TRID) - Correct Answer ✅requires easier to use mortgage disclosure forms that clearly outline HUD Certification Exam Questions and Answers (latest Update 2024) Home Equity Line of Credit (HELOC) - Correct Answer ✅A line of credit from which you can borrow at any time during the draw period, up to your credit limit. FHA 203k Loan - Correct Answer ✅A loan insured by FHA to provide you with an initial loan for purchasing a home as well as funding for home improvement. Streamline 203k Loan - Correct Answer ✅Permits homebuyers and homeowners to finance up to $35K into their mortgage to repair, improve, or upgrade their home. Title 1 Loan - Correct Answer ✅A loan insured by FHA that may be used for alterations, repairs, and site improvements on single family homes and for alterations and repairs on multifamily homes. Energy Efficient Mortgage (EEM) - Correct Answer ✅Assists individuals to purchase an energy efficient home or refinance a home to make energy efficient improvements HUD Certification Exam Questions and Answers (latest Update 2024) HELOC - Correct Answer ✅Best Improvement loan: A client's home improvement plan consists of multiple expenses that may be paid over an extended period of time. FHA 203k Loan - Correct Answer ✅Best improvement loan: A client intends to purchase a home that needs major repairs and will make those repairs with funding rolled into the mortgage loan. Energy Efficient Mortgage - Correct Answer ✅Best loan: A client would like to add insulation to the basement and attic as well as seal air leaks in order to reduce the home's energy consumption. Cash-Out Refinancing - Correct Answer ✅Best Improvement loan: A client leverages home equity through a new, larger loan to access funding to make improvements to the home HUD Certification Exam Questions and Answers (latest Update 2024) Home Equity Loan - Correct Answer ✅Best Improvement loan: A client's home improvement plan consists of a large one-time expense. Streamlined 203k Loan - Correct Answer ✅Best loan: There are a handful of minor repairs that a client would like to make to the home that he is buying. He expects that they will be complete in just a few months. Special Assessments - Correct Answer ✅Funds collected to pay for large maintenance projects that benefit the entire community. Teaser Rate - Correct Answer ✅An initial temporary interest rate on an ARM that results in lower mortgage payments and only remains in effect for a short period of time before increasing. Dual Tracking - Correct Answer ✅The process that occurs when the servicer moves forward with foreclosure while simultaneously working with the borrower to avoid foreclosure.