FICEP Cheat Sheet 2026

The 30 highest-yield FICEP facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. A borrower accepts a deed-in-lieu of foreclosure. What is a key advantage of this option compared to a standard foreclosure? → It typically causes less severe damage to the borrower's credit than foreclosure
2. Which type of student loan is eligible for Public Service Loan Forgiveness (PSLF)? → Federal Direct Loans only
3. The Real Estate Settlement Procedures Act (RESPA) prohibits which of the following practices? → Kickbacks and referral fees between settlement service providers
4. A client has $500 left after all monthly obligations are paid. This amount is best described as: → Discretionary income
5. When discussing sensitive financial topics like bankruptcy, a counselor should primarily use language that is: → Non-judgmental and neutral to reduce client shame
6. A client is offered whole life insurance with 2% guaranteed cash value growth. What should the counselor help evaluate? → Compare total cost against buying term and investing the difference
7. When reviewing a budget with a client, which technique helps prioritize needs over wants? → Ranking expenses by whether they are essential for basic living versus optional
8. Which type of mortgage features an interest rate that can change periodically after an initial fixed-rate period, based on a market index? → Adjustable-rate mortgage (ARM)
9. Under the FCRA, how long does a credit bureau have to investigate a consumer's dispute after it is received? → 30 days
10. What is the first step when a client receives a foreclosure notice? → Contact the mortgage servicer immediately to discuss loss mitigation options
11. Under Chapter 7 bankruptcy, what happens to a debtor's non-exempt assets? → They are sold by a trustee and the proceeds are distributed to creditors
12. What is the primary purpose of maintaining detailed session notes in financial counseling? → To protect client continuity of care and demonstrate professional accountability
13. Which scenario represents a dual-role conflict of interest for a financial counselor? → Providing financial counseling to a personal friend while charging standard fees
14. A client receives a lump-sum inheritance. From a financial counseling perspective, which step should typically come FIRST? → Assess current financial situation, goals, and high-interest liabilities before acting
15. Which communication barrier is most common when discussing finances with clients who have low financial literacy? → Using technical financial jargon without explanation
16. Which of the following best describes a 'holder in due course' issue addressed by the FTC Holder Rule? → A consumer cannot assert defenses against a third-party creditor who purchased the debt
17. In student loan terminology, what does 'capitalization' mean? → The addition of accrued, unpaid interest to the principal loan balance
18. What remedy does the Fair Credit Billing Act provide for unauthorized credit card charges? → The consumer can dispute and liability is limited to $50 for unauthorized use
19. What is 'predatory lending' in the context of consumer financial protection? → Lending practices that impose unfair or abusive loan terms on borrowers
20. What is 'credit utilization ratio' and what level is generally recommended? → Revolving credit used divided by total revolving credit limit; below 30%
21. A client is 60 days past due on a credit card. How will this likely affect their FICO score compared to a 30-day late payment? → A 60-day late payment has a significantly greater negative impact
22. A client owns a universal life policy and wants to know the effect of taking a policy loan versus a partial surrender. Which statement is CORRECT? → Partial surrenders permanently reduce the death benefit; loans do not if repaid
23. Which of the following is an example of a 'closed-ended question' in a financial counseling session? → 'Do you have an emergency fund?'
24. The Gramm-Leach-Bliley Act (GLBA) requires financial institutions to do which of the following? → Provide privacy notices explaining information-sharing practices
25. Which program provides mortgage insurance for loans made by FHA-approved lenders to low-to-moderate income borrowers with down payments as low as 3.5%? → FHA Section 203(b) program
26. Which type of negative information stays on a credit report for seven years from the date of delinquency? → Late payments and collection accounts
27. Which component is essential when building a cash flow projection for a client? → Estimating both income and all anticipated expenses by time period
28. A client aged 72 fails to take their Required Minimum Distribution (RMD) from a traditional IRA. What is the IRS penalty on the amount not withdrawn? → 25% of the RMD amount
29. In addition to salable skills, what qualities must every self-employed worker have to be successful? → The temperament and discipline to manage the business financially.
30. Under the Equal Credit Opportunity Act (ECOA), a lender must notify an applicant of a credit decision within how many days of receiving a completed application? → 30 days