CCC CCC Housing & Mortgage Counseling 1

Question 1

Which federal agency oversees the approval of HUD-certified housing counseling agencies in the United States?

Accepted Answer

The U.S. Department of Housing and Urban Development (HUD)

Answer

HUD approves and oversees housing counseling agencies that provide federally supported counseling services.

Question 2

A client is struggling to pay their mortgage after a job loss. Which foreclosure prevention option allows the lender to temporarily reduce or suspend mortgage payments?

Accepted Answer

Forbearance agreement

Answer

A forbearance agreement temporarily reduces or pauses mortgage payments while the borrower experiences a short-term hardship.

Question 3

What does the term 'loan-to-value ratio' (LTV) represent in mortgage lending?

Accepted Answer

The loan amount divided by the appraised value of the property

Answer

LTV is calculated by dividing the mortgage loan amount by the appraised property value, expressed as a percentage.

Question 4

Under the Real Estate Settlement Procedures Act (RESPA), what document must lenders provide to borrowers within three business days of receiving a mortgage application?

Accepted Answer

Loan Estimate

Answer

RESPA (as amended by TRID rules) requires lenders to provide a Loan Estimate within three business days of application.

Question 5

A client's mortgage payment exceeds 28% of their gross monthly income. According to conventional guidelines, this is referred to as which type of ratio?

Accepted Answer

Front-end ratio

Answer

The front-end (or housing expense) ratio measures housing costs as a percentage of gross income, with 28% being the conventional guideline.

CCC Practice Test

CCC Practice Test

CCC CCC Housing & Mortgage Counseling 1