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. The Real Estate Settlement Procedures Act (RESPA) prohibits which of the following practices? → Kickbacks and referral fees between settlement service providers
2. 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
3. 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)
4. What is the first step when a client receives a foreclosure notice? → Contact the mortgage servicer immediately to discuss loss mitigation options
5. 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
6. What is the primary purpose of maintaining detailed session notes in financial counseling? → To protect client continuity of care and demonstrate professional accountability
7. Which communication barrier is most common when discussing finances with clients who have low financial literacy? → Using technical financial jargon without explanation
8. In student loan terminology, what does 'capitalization' mean? → The addition of accrued, unpaid interest to the principal loan balance
9. 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
10. 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
11. Which type of negative information stays on a credit report for seven years from the date of delinquency? → Late payments and collection accounts
12. 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.
13. 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
14. Which ratio do most conventional lenders use as the maximum recommended back-end debt-to-income ratio for mortgage qualification? → 43%
15. What is the most appropriate action when a client shares information about illegal financial activity? → Understand mandatory reporting obligations while explaining confidentiality limits
16. Which ethical principle requires financial counselors to only provide services within their area of expertise? → Competence
17. Under what circumstances is it ethical to break client confidentiality? → When there is a legal obligation such as court order or mandatory reporting
18. Who is eligible to participate in the federal government's National Flood Insurance Program? → Homeowners in participating communities that are susceptible to floods.
19. What does the term 'escrow' refer to in the context of a mortgage payment? → Funds held by a third party to pay property taxes and insurance on behalf of the borrower
20. What is the debt snowball method and why do behavioral economists recommend it? → It targets the smallest balance first to create psychological momentum
21. What does the Truth in Lending Act primarily require lenders to disclose? → The annual percentage rate and total cost of credit
22. Which active listening technique involves restating the client's message in the counselor's own words? → Paraphrasing
23. Under the Graduated Repayment Plan for federal student loans, how do monthly payments change over the repayment period? → Payments start lower and increase every two years
24. Why is it important for individuals to review their insurance policies regularly? → To ensure coverage continues to meet their changing needs and circumstances
25. Which type of insurance provides coverage for property damage and liability in the event of an auto accident? → Auto insurance
26. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) requires debtors to complete what before filing for bankruptcy? → A credit counseling course from an approved agency within 180 days before filing
27. What are the three levels of the savings pyramid? → Periodic savings, safety-net accounts, and retirement or other long-term savings.
28. What belief do people who commit fraud often take advantage of? → Believing in something that is "too good to be true.
29. Which type of insurance is most critical for a single-income family with young children? → Life insurance on the primary earner
30. How often are credit scores updated at the three major credit bureaus? → Whenever creditors report new information, typically monthly