misc things from assessment review

Question 1

if the client submits a loan application, which document should she receive within three business days?

Answer 1

loan estimate

within three days of receiving a loan application, lenders are required to supply the client with a loan estimate

Question 2

what is the maximum back-end ratio for FHA PITIA?

Answer 2

43%

Question 3

how much should a housing counselor recommend the client save in an emergency fund?

Answer 3

3-6 months worth of living expenses

Question 4

what is the best financing option for a client to complete multiple home repairs over time without refinancing?

Answer 4

home equity line of credit

Question 5

what notice must the servicer send the client once the mortgage is delinquent and before 45 days past due?

Answer 5

notice of homeownership counseling availability

Question 6

what term would most accurately describe a client’s loan status at three months late in payment

Answer 6

default

Question 7

where is the client in the foreclosure timeline if she has missed three payments and lives in a non-judicial state?

Answer 7

the client is in default

Question 8

after how many days can foreclosure proceedings begin if the client is not being evaluated for loss mitigation, and has missed payments on an FHA loan?

Answer 8

120 days

Question 9

what advice should a housing counselor provide for a client who is considering filing for bankruptcy but wants to keep her home?

Answer 9

explore loss mitigation options available

while counselors can describe bankruptcy options, they cannot make bankruptcy recommendations - counselors should discuss available alternatives to bankruptcy

counselors cannot recommend a single attorney; however, they may provide information on legal aid services

Question 10

which type of mortgage will allow family assistance on a down payment?

Answer 10

FHA is the only mortgage loan product that allows family assistance

USDA and VA do not require down payment, and most conventional loans generally will not allow funds other than those from the borrower as a down payment

Question 11

if a client decides to apply for loan modification and shows their housing counselor an advertisement that guarantees a government-approved loan modification for a $1,500 fee, what is the best advice the counselor can give?

Answer 11

report the company to the FTC because no company can guarantee loan modifications

Question 12

what advice should a housing counselor give a client who faces potential eviction from unpaid rent?

Answer 12

pay the back-owed rent and provide a list of emergency rental assistance programs

Question 13

what is the maximum number of days after filing a complaint that HUD must conclude an investigation?

Answer 13

100

HUD strives to conclude all fair housing investigations no later than 100 days after filing the complaint, unless it is impracticable to do so. In those impractical cases, the HUD Secretary notifies the complainant in writing of the reasons for the delay.

Question 14

what is the maximum percent of area median income allowable for a household to qualify for a Housing Choice Voucher?

Answer 14

50%

Question 15

what is the maximum recommended housing ratio for renting an apartment?

Answer 15

30% of gross income

Question 16

how should a client apply for the Housing Choice Voucher Program?

Answer 16

contact the local Public Housing Authority

Question 17

what website provides information on programs to assist homebuyers with down payment assistance?

Answer 17

HUD.gov

Question 18

in order to minimize the impact on a client’s credit score, what is the maximum time frame within which the client should apply for pre-approval from multiple lenders?

Answer 18

a 30-day period

Question 19

what is the average range of closing costs?

Answer 19

3-4%

Question 20

what is the maximum debt-to-income ratio allowable for an FHA loan?

Answer 20

43%