CCC CCC Housing & Mortgage Counseling

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

The Federal Reserve

Answer

The Consumer Financial Protection Bureau (CFPB)

Answer

The Federal Housing Finance Agency (FHFA)

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

Deed-in-lieu of foreclosure

Answer

Short sale

Answer

Loan modification

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

The borrower's monthly payment divided by their gross income

Answer

The total interest paid over the life of the loan

Answer

The ratio of principal to interest in each payment

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

Closing Disclosure

Answer

Truth in Lending Statement

Answer

Good Faith Estimate

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

Back-end ratio

Answer

Debt-to-income ratio

Answer

Housing expense ratio

Question 6

Which type of mortgage has an interest rate that adjusts periodically based on a financial index after an initial fixed period?

Accepted Answer

Adjustable-rate mortgage (ARM)

Answer

Fixed-rate mortgage

Answer

Balloon mortgage

Answer

Interest-only mortgage