Two homeowners are making adjustments to household spending. What might a housing counselor assume?

In this scenario, when two homeowners are making adjustments to their household spending, a housing counselor might assume that Client 2 is more likely to be in either default or imminent default. This is based on the context that homeowners who are making significant changes to their spending habits may be doing so in response to financial stress or difficulties in meeting their current obligations.

When homeowners are adjusting their budgets, it often indicates that they are trying to manage their finances, which could suggest they are experiencing financial strain. If one client is making more drastic changes to their spending patterns compared to the other, this might signify that Client 2 is facing more immediate financial challenges or risks of defaulting on their mortgage or other housing-related payments.

This assumption aligns with the practices of housing counselors who assess financial stability and risk factors among clients. They often look for signs of financial distress, such as the need for substantial adjustments in household spending, as indicators that a homeowner may be heading towards default or may already be in a precarious financial situation.

The other options reflect assumptions that do not necessarily relate to the immediate financial behavior being observed. For instance, the notion that one homeowner has a larger income than the other isn't a direct conclusion from spending adjustments. Similarly, the preparedness for emergencies or