Housing and Urban Development (HUD) Practice Test

These questions are part of the practice quiz. Start practicing

• What legal document typically initiates the foreclosure process?
• Which practice remained legal after the passage of the Civil Rights Act of 1964?
• What is one significant outcome of HUD's policies?
• Which federal act established the Fair Housing Administration?
• Which populations are often the primary beneficiaries of HUD's housing programs?
• Which factor is typically reviewed by lenders to assess a borrower's ability to repay?
• A homeowner planning to remodel their basement should consider using which home financing option for a project cost just under $24,000?
• Who is likely to issue a Housing Choice Voucher?
• What kind of assistance does the Section 8 program provide?
• Which should a housing counselor recommend that a client include in a household maintenance plan?
• A client with limited financial resources wants to improve safety in the home to prepare for natural disasters. Which is the best resource for the client to use in researching this topic?
• What is the purpose of the Housing Opportunities for Persons With AIDS (HOPWA) program?
• What is the goal of the Threshold Program within HUD?
• What is the Rebuilding and Recovery program in regards to HUD?
• Which document is essential for tenants to ensure tenancy rights are protected?
• What typically indicates a strong character assessment for a borrower?
• What is the main goal of the Veterans Affairs Supportive Housing (VASH) program?
• Which HUD program provides funding to nonprofits that assist people who may have been victims of housing discrimination?
• What is the minimum qualifying credit score for an FHA mortgage with a 3.5% down payment?
• Delinquency on which type of payment can lead to a lien on a client's property?
• Which situation is typically covered by renter's insurance?
• What is the function of a Public Housing Authority (PHA)?
• What type of unsolicited offer to avoid foreclosure could indicate a scam?
• What is the primary purpose of Fair Housing laws enforced by HUD?
• What factors are considered in determining housing discrimination under the Fair Housing Act?
• What does HUD stand for?
• Which of the following programs is designed to strengthen partnerships for affordable housing?
• Which financial responsibility can impact a homeowner's ability to sell their property?
• What is HUD's goal regarding the provision of services to communities?
• What benefit does the 203(k) Rehabilitation Mortgage Insurance program provide?
• What is commonly assessed in determining if homeownership is right for a client during the homebuying process?
• What is the purpose of the Youth Homelessness Demonstration Program (YHDP)?
• The terms Ability to Repay and Qualified Mortgage were defined in regulations implemented by which agency?
• What is a key component of the Fair Housing Act?
• How does a lender typically verify a borrower's income?
• What is the major outcome expected from the Neighborhood Stabilization Program (NSP)?
• Which retention option allows borrowers to keep their home while resolving delinquency issues?
• Which type of insurance is mainly used to protect personal belongings in rental properties?
• Which strategy would be most beneficial for a client experiencing ongoing financial difficulty with their mortgage payments?
• Which HUD program is specially designed to promote home ownership for veterans?
• What would be the best location to identify in a household emergency preparedness plan as a safe place to meet in the event of an evacuation?
• What might result from a client closing their credit card accounts?
• What does the acronym PHA stand for in the context of housing programs?
• Which is a potential violation of the Fair Housing Act?
• When a tenant's apartment is sold and rent is raised, what must the new landlord do?
• Which is a campaign to inform the public about fair housing rights?
• Why is it important to have an identified meeting place during an emergency?
• What is the aim of the Section 202 Supportive Housing for the Elderly program?
• What type of housing assistance does the Low-Income Housing Tax Credit program provide?
• Which type of individual is most likely to qualify for the Earned Income Tax Credit (EITC)?
• What is the purpose of the Community Development Block Grant (CDBG) program?
• What distinguishes PMI from MIP in loan requirements?
• How does HUD define "community development"?
• In which circumstance may a tenant terminate a lease without financial repercussions?
• What is typically required as part of the pre-approval process for a mortgage loan?
• Which of the following is NOT a function of the Office of Fair Housing and Equal Opportunity?
• How does MIP typically operate for FHA loans compared to PMI for conventional loans?
• What is a likely outcome of modifying loan terms for a client in financial distress?
• Which action is explicitly prohibited under the Fair Housing Act?
• A client would like to purchase a home within one year. What is the best solution for the client to save for a down payment?
• When reviewing a mortgage offer, what should be the first question regarding the loan's terms?
• What is the role of the Fair Housing Act within HUD?
• Which action would most likely increase the energy efficiency of a home?
• What action does a servicer take in the non-judicial foreclosure process?
• What does HUD aim to achieve through affordable housing initiatives?
• Which retention option would most likely offer a principal reduction for clients?
• What is the main objective of the Housing Trust Fund?
• How does HUD define “affordable housing”?
• Which document is most important when working with a client to develop an initial budget as part of a Client Action Plan?
• Which aspect of a loan may a client modify when seeking a loan modification due to divorce?
• Which law prohibits discrimination by lenders against borrowers using public assistance?
• What challenge does HUD aim to address with the Affordability Index?
• Which option is most likely to require that the mortgage is current for eligibility?
• What type of data does the American Housing Survey (AHS) collect?
• Which aspect of the lending process cannot change from the initial loan estimate?
• What approach does HUD use to handle complaints of housing discrimination?
• What are "qualified census tracts" in relation to HUD programs?
• Which action is most effective in increasing a credit score?
• What is typically the first step a homeowner should take if they are facing foreclosure?
• Which practice is a legal exception to the Fair Housing Act?
• What does the acronym HAMP stand for in mortgage assistance?
• What type of information may be included in a credit report?
• Which act aims to expand affordable housing availability through government support?
• Given a monthly household income of $2,300 and an optimal monthly housing ratio of 32%, what is the client's optimal monthly housing payment?
• Which loss mitigation option may allow a borrower an FHA Partial Claim?
• What is one of the goals of the Housing Choice Voucher Program?
• What is the primary purpose of down payment assistance programs?
• What type of housing does the term "Public Housing" specifically refer to?
• Which type of government insured loan was created for financing homes in rural areas?
• What option is least likely to assist a client facing mortgage delinquency?
• What should a counselor and tenant focus on when developing an emergency budget?
• How does HUD define "Affordable Housing"?
• What factor is considered when a lender asks about a borrower's savings for a down payment on a home?
• Under what circumstance must a servicer refrain from beginning the foreclosure process?
• What is typically included in a housing counseling review?
• A client has faced an unexpected car expense, using rent money to pay for it. Which resource should a housing counselor recommend first to avoid making a late payment?
• What is the Fair Housing Act?
• What does the term "subsidized housing" refer to?
• What is an essential step in creating a household emergency kit?
• What mortgage is a potential homebuyer with low credit and minimal savings most likely to qualify for?
• What are the eligibility criteria for HUD public housing?
• A client has a debt-to-income ratio of 36% and is purchasing a home for $162,000 with an appraised value of $155,000. What factor of creditworthiness is most likely an obstacle to the purchase?
• What action may a lender take to determine a borrower's character?
• In which scenario would a home warranty be particularly beneficial?
• What is an essential step that a homebuyer must complete during the purchasing process?
• What is a typical responsibility of a landlord?
• Which are protected characteristics under the federal Fair Housing Act?
• Two homeowners are making adjustments to household spending. What might a housing counselor assume?
• Which option allows the borrower to avoid foreclosure by disposing of a property for an amount less than the outstanding mortgage balance?
• What should a housing counselor recommend to a client who is delinquent on their mortgage and considering signing the deed over to a real estate investor?
• What is the goal of the Community Development Block Grant?
• What is the main focus of HUD's Tools for Homelessness Assistance program?
• Which of the following is a goal of HUD?
• What is the essential purpose of a credit report?
• What does the acronym FHA stand for in the context of HUD?
• What advice should a housing counselor give to a client renting month to month to better secure their housing?
• What is the primary mission of HUD?
• What kind of assistance can local government programs typically provide to renters facing eviction?
• What is the Rental Assistance Demonstration (RAD) program?
• What is the consequence for failing to comply with the Fair Housing Act?
• What is a common requirement when applying for an FHA loan?
• How can a short sale benefit a homeowner facing foreclosure?
• How does HUD support rural communities?
• What does the acronym HCV stand for?
• A tenant holding a Housing Choice Voucher for a two-bedroom apartment currently lives in a three-bedroom unit but is behind on rent. What should the counselor encourage the client to do?
• What is the Section 8 Housing Choice Voucher program?
• In what situation might a first-time buyer consider an FHA loan?
• How does HUD define "homelessness"?
• Which charge will remain the same from the Loan Estimate to the Closing Disclosure?
• How does HUD support fair housing education?
• Which of the Four C's of Credit may require a buyer to consider an FHA loan when unable to qualify for a conventional loan?
• What is a common method used to address housing discrimination complaints?
• What is a key difference between FHA-insured mortgages and private mortgage insurance?
• What is a primary factor to consider when selecting a home loan?
• What does the acronym LIHTC stand for?
• Which strategy used by an unemployed client will most likely lead to moving out of a shelter into permanent affordable housing?
• What does the Affirmatively Furthering Fair Housing (AFFH) rule require?
• Which HUD program helps low-income families buy homes?
• Which type of assistance, administered by a public housing authority, allows for location flexibility?
• After discovering identity theft, which step should a client take first?
• What demographic does the Section 811 program primarily target?
• What disclosures were replaced under the Know Before You Owe rule?
• What is the Consolidated Plan in the context of HUD?
• What is the back-end ratio for a client with a monthly housing expense of $1,250, other consumer debt payments of $88, and a gross household income of $4,460?
• What is the major function of the Office of Fair Housing and Equal Opportunity (FHEO)?
• Which strategy is most effective for increasing a home's energy efficiency?
• Who administers the HUD Public Housing program?
• If a client has received a commitment from a lender based on their complete loan application, what stage are they in?
• Which type of information is included in the Uniform Residential Loan Application (URLA)?
• What is generally a critical first step for anyone considering buying a home?
• A client works 40 hours a week making $15 an hour. What is the highest monthly mortgage they can afford based on their income?
• A counselor is working with a recently evicted client. What would be the most appropriate referral?
• In which scenario would a client’s housing costs be evaluated?
• What is the goal of the HOME program?
• When assisting a low-income client in danger of eviction, which referral would be most appropriate for a housing counselor?
• What organization oversees compliance with HUD's environmental regulations?
• A single, gay, African-American parent with four kids is turned away from a property because the landlord does not want the kids to destroy the property. Which protected characteristic of discrimination most likely fits this case?
• What was the primary purpose of the Making Home Affordable program?
• Which factor influences the cost of earthquake insurance?
• When helping a client create a household system maintenance plan, which item is critical to consider?
• What does the acronym NSP stand for?
• In what year was HUD established?
• Which group primarily benefits from the Section 8 Housing Choice Voucher program?
• What is a potential outcome if a homeowners association (HOA) imposes a community assessment?
• What is the significance of Title VI of the Civil Rights Act of 1964 in relation to HUD?
• What does the National Housing Act aim to achieve?
• Which type of plan is essential for hurricane preparedness?
• When filing a fair housing complaint, why is it important to provide the date of the alleged violation?
• If a family is seven months behind on their mortgage and has a debt-to-income ratio of 29%, which retention option would be best for them?
• What do public housing eligibility criteria ensure?
• What is a common reason for a landlord to retain a security deposit?
• What is the primary focus of HUD's Green building initiatives?
• A client does not receive a written monthly statement from their credit card company. Which law might this violate?
• Which item should be included in an emergency preparedness plan?
• What initial strategy might a housing counselor recommend for a client with unfavorable rental history?
• What FHA Loss Mitigation option is likely best for a client with a recent income reduction who has an FHA loan?
• What is the primary goal of the Homeless Assistance Grants program?
• What type of assistance does the Emergency Solutions Grant (ESG) program provide?
• Which factor could negatively impact a client’s credit score when restoring their credit?
• Who would generally be considered ineligible as a first-time homebuyer for most down payment assistance programs?
• What financial tool would best assist a client experiencing budget problems due to unexpected expenses?
• What does the Family Self-Sufficiency (FSS) program aim to do?
• Why is including a 4506-T form important when submitting a loss mitigation package?
• What is the goal of the Low-Income Housing Tax Credit program?
• What kind of discrimination is barred by the Fair Housing Act regarding families?
• What is the role of the HUD Secretary?
• Which of the following programs targets urban development issues?
• Which of the following is an example of character as a component of creditworthiness?
• Which federal program directly addresses the issue of homelessness?
• Which agency is responsible for enforcing the Fair Housing Act?
• What is the most significant benefit of using a real estate agent when buying a home?
• What essential information is necessary for counseling clients through the loss mitigation process?
• What is a key benefit of regular home maintenance?
• Under which condition would most down payment assistance programs approve a waiver of the homeownership education requirement?
• What does the Fair Housing Act promote?
• What does HUD’s Continuum of Care (CoC) program aim to achieve?
• Which factor of creditworthiness does a client's payment history affect?
• What types of projects can receive funding through the CDBG program?
• Why was the Federal Housing Administration (FHA) created?
• Which loan type would require the highest monthly payment if the client has a small down payment and other factors are equal?
• How should a homeowner interpret a letter from a lawyer offering to stop foreclosure proceedings for an upfront fee?
• Which best describes the ENERGY STAR program?
• Which action would a client take to improve their credit score?
• What is the mission of the Office of Policy Development and Research (PDandR) in HUD?
• While meeting with a housing counselor, a client describes a possible housing discrimination situation. Which is the best way to handle the violation?
• What is one major requirement for receiving Community Development Block Grant (CDBG) funds?
• What is a critical factor in determining eligibility for a loan modification?