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HUD Exam - Avoiding Foreclosure, question and answer with rated solution
The following contributed to the increase in foreclosure rates, except: A. Subprime lending B. Risky loan products with feature like negative amortizatio... [Show More] n C. Demand from the secondary market D. Homeowners paying off mortgages early E. Using teaser rates to qualify more borrowers. D. Homeowners paying off mortgages early. Making Home Affordable was created in order: A. To make it easier for borrowers to understand loan terms, to require homeownership counseling for some mortgages, and to expand protection B. To help homeowners avoid foreclosure, stabilize the housing market, and improve the economy. C. To enable 18 states and the District of Columbia to develop locally tailored programs to assist struggling homeowners in their communities. D. To penalize five financial institutions for deceptive lending and foreclosure practices B. To help homeowners avoid foreclosure, stabilize the housing market, and improve the economy. The Consumer Finance Protection Bureau was created: A. To penalize five financial institutions for deceptive lending and foreclosure practices. B. To make it easier for borrowers to understand loan terms, to require homeownership counseling for some mortgages, and to expand protections C. To create a federal agency charged with addressing failures of consumer protection D. To help homeowners avoid foreclosure, stabilize the housing market, and improve the economy C. To create a federal agency charged with addressing failures of consumer protections The National Mortgage Settlement was created: A. To make it easier for borrowers to understand loan terms, to require homeownership counseling for some mortgages, and to expand protections B. To enable 18 states and the District of Columbia to develop locally tailored programs to assist struggling homeowners in their communities C. To help homeowners avoid foreclosure, stabilize the housing market, and improve the economy D. To penalize five financial institutions for deceptive lending and foreclosure practices. D. To penalize five financial institutions for deceptive lending and foreclosure practices Issuance of New Morgage Rules was created in order: A. To make it easier for borrowers to understand loan terms, to require homeownership counseling for some mortgages, and to expand protections. B. To enable 18 states and the District of Columbia to develop locally tailored programs to assist struggling homeowners in their communities. C. To create a federal agency charged with addressing failures of consumer protection. D. To penalize five financial institutions for deceptive lending and foreclosure practices A. To make it easier for borrowers to understand loan terms, to require homeownership counseling for some mortgages, and to expand protections. The Hardest-Hit Fund was created in order: A. To make it easier for borrowers to understand loan terms, to require homeownership counseling for some mortgages, and to expand protections. B. To enable 18 states and the District of Columbia to develop locally tailored programs to assist struggling homeowners in their communities. C. To create a federal agency charged with addressing failures of consumer protection. D. To help homeowners avoid foreclosure, stabilize the housing market, and improve the economy. B. To enable 18 states and the District of Columbia to develop locally tailored programs to assist struggling homeowners in their communities. Since receiving a loan modification several years ago, a borrower had been current on his mortgage until he recently suffered a severe reduction in income. A housing counselor advised the client to seek assistance from the servicer to prevent foreclosure. The servicer claimed it could not evaluate the borrower for further relief due to the prior modification. Is the servicer in compliance? A. Yes B. No B. No. -Servicers are required to provide certain borrowers with foreclosure protections more than once over the life of the loan, provided that borrowers become current on payments at any time between completed prior and subsequent loss mitigation applications. A counselor must know the foreclosure processes. The following state agencies are typically where counselors can look for information on their states' processes except: A. Housing Department B. Attorney General's Office C. State Housing Finance Agency D. Department of Community Affairs E. All of the above E. All of the above -Depending on the state, any one of these offices could have information on your state's foreclosure process Which actions below typically occur during a judicial foreclosure process? A. The client receives a Notice of Default in the mail. B. The client's opportunity to fight a foreclosure takes place in court. C. Communication occurs between the servicer and the homeowner D. Both A and B B. The client's opportunity to fight a foreclosure takes place in court. Which actions belowe typically occur during a non-judicial foreclosure process? A. The client receives a Notice of Default in the mail. B. The servicer can't take any foreclosure action against a client until a judge grants them permission. C. The client has until five days before a foreclosure sale to cure a delinquency and stop the sale. D. Both A and C. D. Both A and C. A counselor needs to know the following items in order to evaluate a client's budget, except: A. Credit score reflecting recent negative impact B. Monthly income from a part-time job C. Credit report information including delinquencies. D. Mortgage information including past due amount. A. Credit score reflecting recent negative impact. -While credit scores are important for overall financial understanding, the score is not necessary to create a budget. What are the most common reasons why individuals face foreclosure? Select one of the following options. A. Increase in expenses and reduction in income. B. Medical bills and poor budget management skills C. Poor investment and/or not being able to flip an investment property D. Reduced and/or lost income. D Reduced and/or lost income The following are reasonable options for a homeowner facing foreclosure except: A. Talk to servicer about modification or rapayment plan B. remain in the home without paying mortgage C. Establish an emergency budget to catch up on payments D. Send partial mortgage payments when possible. E. B and D E. B and D. -You won't be able to stay in your home indefinitely if you don't pay your mortgage. In many cases, servicers will not accept partial payments.Typically extended nonpayment will result in foreclosure, leading to the eviction process All of these are options when creating an emergency budget for a client who wants to remain in his/her home, except: A. Asking older children who live with them to help pay some bills. B. missing mortgage payments C. Cooking dinner at home every night D. Earning extra income from a side business. B. Missing mortgage payments. Homeowners need to show their servicer they are making a good faith effort to meet financial obligations. Jessica, a Florida resident, was in a car accident and subsequently had to pay medical bills and purchase a new car. Although she is still able to work, Jessica is unable to cover her mortgage payment because of the unexpected expenses. She is now seven months past due on her mortgage and has received a Notice of Default. Her requests to her servicer for a retention option have been denied. To help her catch up on her other bills so she can start making her mortgage payments again, for which payment assistance program should she apply? A. Florida Hardest-Hit Program B. Leon County Foreclosure Prevention Assistance Program C. Florida Hardest-Hit Program - Unemployment Mortgage Assistance Program B. Leon County Foreclosure Prevention Assistance Program. -Jessica has exhausted all other options and will not qualify for the other programs since she was never unemployed. A Florida homeowner has been unemployed for 14 months and is now facing foreclosure. Which financial assistance program may s/he qualify for? A. Leon County Foreclosure Prevention Assistance Program B. Florida Hardest-Hit - Mortgage Loan Reinstatement Payment C. Florida Hardest-Hit - Unemployment Mortgage Assistance Program C. Florida Hardest-Hit Program - Unemployment Mortgage Assistance Program. A Florida homeowner is five months behind on her mortgage and has received an NOD. She had a temporary financial hardship that is now cleared. She can make up the past due amount overtime. She has requested assistance from her servicer but has been declined. What financial assistance program would be her best options? A. Leon County Foreclosure Prevention Assistance Program B. Florida Hardest-Hit - Mortgage Loan Reinstatement Payment C. Florida Hardest-Hit - Unemployment Mortgage Assistance Program A. Leon County Foreclosure Prevention Assistance Program. A Florida homeowner had his hours cut in half and is struggling to pay his mortgage. He has made partial payments for six months, but the servicer has sent him a NOD. Which financial assistance program would best fit this client's situation? A. Leon County Foreclosure Prevention Assistance Program B. Florida Hardest-Hit - Mortgage Loan Reinstatement Payment C. Florida Hardest-Hit - Unemployment Mortgage Assistance Program C. Florida Hardest-Hit - Unemployment Mortgage Assistance Program A Florida homeowner is three months behind on her mortgage because she was laid off and has received an NOD. She is working full-time again and can afford her original payments once she is caught up. Which financial assistance program would best fit her situation? A. Leon County Foreclosure Prevention Assistance Program B. Florida Hardest-Hit - Mortgage Loan Reinstatement Payment C. Florida Hardest-Hit - Unemployment Mortgage Assistance Program B. Florida Hardest-Hit Program - Mortgage Loan Reinstatement Payment Which program continued to be available to borrowers after the MHA expiration in December 2016? A. HAMP B. HARP C. PRA B. HARP -The HARP expiration date was September 30, 2017 Under the MHA program, modification options offer relief to homeowners__________, while refinance options target borrowers ___________. A. in default; in good standing B. in good standing; in default C. with GSE loans; with non-GSE loans D. with non-GSE loans, with GSE loans A. in default/in good standing A client needs to gather all of the financial documentation below to submit an MHA loan modification request, except: A. Two most recent bank statements B. Utility bill showing homeowner name and property address C. Last two years tax returns D. Information on amounts paid for child care D. Information on amounts paid for child care -This is not a required piece of financial information. Which best describes access to the HLP main platform where loss mitigation/retention option applications are submitted? A. Counselors can sign up for an account directly on the site B. Homeowners can sign up for an account directly on the site. C. Only counselors with certain certifications can have an account on the site. D. The counseling agency's HLP account administrator must provide access for each counselor at the agency. D. The counseling agency's HLP account administrator must provide access for each counselor at the agency. -One person from each agency serves as its administrator and creates accounts for each counselor that should access the site. All of the following are true about HLP's Case Status system, except: A. The Status tab is only visible when a case is open B. It shows the last case update and amount of time the case remained in the previous status. C. It shows who is in control of the process - the servicer or the counselor. D. Servicers must update the case status every 20 days when they are in control of the process. D. Servicers must update the case status every 20 days when they are in control of the process. -Servicers must update the case status every 10 days. Anthony received a letter regarding modifying his mortgage in the mail, and he knew it was from a scammer. To which of the following entities should he report this activity? A. Federal Trade Commission B. Homeowners Hope Hotline C. Loan Modifications Scam Alert Campaign D. All of the above D. All of the above -Scams should be reported to each of these entities to ensure documentation is thorough All of the following are eligibility requirements of the FHA-HAMP Loan Modification, except: A. Mortgage is in default of imminent default but not in foreclosure. B. At least one borrower has continuous income. C. Borrower must demonstrate minimum surplus income amount. D. Property must be and must remain the borrower's primary residence. C. Borrower must demonstrate minimum surplus income amount. -Borrower must demonstrate that income is insufficient to cure arrears within six months. A Borrower receives a letter from his servicer discussing possible workout options. Is this an aspect of a loan modification scam? A. Yes. B. No. B. No A Borrower receives a call from a lending company that says they will get her a modification for $1,000. Is this an aspect of a loan modification scam? A. Yes. B. No. A. Yes Borrower receives letter from HARP program informing him he may qualify for refinancing. Is this an aspect of a loan modification scam? A. Yes B. No B. No Borrower receives a call from a company she's never heard of about a loan modification and is asked for her Social Security number over the phone. Is this an aspect of a loan modification scam? A. Yes B. No A. Yes A legal process in which mortgaged property is sold to pay the loan of the defaulting borrower. Laws are based on the statutes of each state. A. Deed-in-Lieu B. Foreclosure C. Short Sale D. None of the above B. Foreclosure A procedure in which the borrower is allowed to sell a property for an amount less than the outstanding mortgage balance owed to avoid a foreclosure. Also called a preforeclosure sale. A. Deed-in-Lieu B. Foreclosure C. Short Sale D. None of the above C. Short Sale A process that allows a homeowner to avoid foreclosure, providing a deed to the lender instead. Though it helps avoid foreclosure, the process does not allow the homeowner to stay in the home. A. Deed-in-Lieu B. Foreclosure C. Short Sale D. None of the above A. Deed in-Lieu -Though it helps avoid foreclosure, the process does no allow the homeowner to stay in the home. All are consequences of a homeowner going through foreclosure, short sale, or deed-in-lieu, except: A. Negative impact on credit for several years. B. Short-term inabtility to secure a new prime mortgage. C. Potential loss of equity built up in home. D. Lack of financial assistance for relocation. D. Lack of financial assistance for relocation. -Relocation assistance can be offered for homeowners considering all three options. What does it mean for a mortgage to be underwater? A. A mortgage required for any structure built at or below sea level. B a home suffered flooding and resulting damages caused mortgage delinquency. C. A mortgaged property is worth less than the balance owed to the lender. D. A borrower is drowning in late payments and trying to become current. C. A mortgaged property is worth less than the balance owed to the lender. When a borrower is trying to avoid foreclosure, a mortgage company will usually consider a _____ before a _____. A. deed-in-lieu, short sale B. short sale, deed-in-lieu B. Short sale, deed-in-lieu Lenders often offer short sale of deed-in-lieu options for homeowners trying to sell the home quickly before attempting a regular home sale. A. True B. False B. False -The term "short sale" refers to a shortage in the amount repaid, not the length of the sale period. A regular home sale is often the best option for both homeowner and lender, though underwater mortgages and other circumstances may require the evaluation of alternative options, such as a short sale or deed-in-lieu. All of the following statements are true if a client would like to secure rental housing after a foreclosure, short sale, or deed-in-lieu, except: A. The client should wait until after the sale is finalized. B. The client should be prepared to have a co-signer. C. The client should try to secure housing before the sale is finalized. D. The client should have money saved for a security deposit. A. The client should wait until after the sale is finalized -Because the client's credit score will be negatively impacted, s/he should try to secure housing prior to the finalization of the sale. How many days from the date of the missed payment does the servicer have to make live contact with the homeowner? A. 42 B. 60 C. 90 D. 36 D. 36 Is the servicer required to give information about specific loss mitigation options? A. Yes B. No B. No Which of the following is not a loss mitigation tool that would be used with an incurable situation? A. Deed-in-Lieu of Foreclosure B. Short Sale C. Hardship Assumption D. Modification D. Modification [Show Less]
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Section 3: Unit 7: Rights of the Parties, 100% accurate
The ________________________ (MBA) is the national association representing the entire real estate finance industry. Mortgage Bankers Association L... [Show More] ist five of the HUD rights for borrowers. (Additional correct answers are found on page #3.) Right to shop for the best loan and compare charges Right to be informed about the total cost of the loan Right to an estimate of all loan and settlement charges before agreeing to the loan Right to know what fees are not refundable if borrower cancels the loan Right to know how much the mortgage broker is being paid by borrower and by lender List five of the MBA rights for borrowers that are different or in addition to the rights provided by HUD. (Additional correct answers are found on page #4.) Right not to be subject to deceptive marketing tactics Right to receive credit counseling prior to loan closing Right to decline credit insurance Right to fair and equitable resolution to disputes related to the loan Right to have favorable information reported to credit reporting agencies on a timely basis Does a borrower have any rights to object to and stop an assignment of his loan for servicing? Why or why not? This depends entirely on the written agreement between the borrower and the lender. If the agreement does not prevent the lender from selling the loan and its servicing rights, the borrower has no rights to stop the assignment. If the agreement states the lender will not assign the loan and its servicing, then the borrower can object and bring legal action to stop the assignment. List five servicers requirements included in the amendment to Regulation X. (Other correct answers can be found on page #7.) Correct errors asserted by mortgage loan borrowers Provide certain information requested by such borrowers Evaluate borrowers' applications for available loss mitigation options Provide disclosures to borrowers in connection with transfers of mortgage servicing Return amounts in an escrow account to a borrower upon payment in full of a mortgage loan Rights Under the Equal Credit Opportunity Act you don't have to tell about your race, martial status, kids... If the contract contains an Acceleration Clause and the borrower defaults on the loan, the lender has the right to call the entire balance due and payable immediately. Without this clause, the lender would not have the right to foreclose without suing each month for monthly payment. Alienation Clause "If all or any part of the property herein is transferred without the lender's prior written consent, the lender may require all sums secured hereby immediately due and payable." What is required under Regulation Z and to what loans does this regulation NOT apply? Reg Z requires lenders to disclose to buyers the true cost of obtaining credit so the borrowers can compare the costs of various lenders. It does not apply to commercial loans or agricultural loans over $25,000. Briefly explain the Right to Rescind. The borrower has the right to cancel a credit or loan transaction by notifying the lender within 3 days. This right does not apply to residential first mortgage loans. List five borrower rights under ECOA. (Additional correct answers are found on page #13.) Right to apply for credit regardless of sex, marital status, age, race, national origin, or receipt of public assistance income Right not to reveal plans for having or raising children Right not to reveal if applicant is widowed or divorced Right not to reveal sex, race, national origin, or religion. Right not to reveal marital status if applying for a separate, unsecured account ist three lender rights under a loan agreement. (Any three of the following.) To receive payment of the debt in accordance with the terms of the note To require the borrower pay all real estate taxes on the property given as security To require the borrower maintain adequate insurance To require the borrower to maintain the property in good repair at all times To require the borrower to obtain lender authorization prior to making any major alterations to the property What is the lender's right under an Alienation Clause? The lender has the right to declare the entire balance of the loan due and payable when any interest in the property is transferred without written consent of the lender. Only 20 states, primarily in the northeastern U.S., require judicial review before a lender can foreclose on a mortgage. These are known as "judicial states." Is Indiana a judicial state? yep Indiana is known as a ______________ where the property acts as security for the underlying loan. lien theory state In Indiana, lenders have the right to foreclose on a mortgage in default only by using the _________________. judicial foreclosure process. A lender must usually wait ___________________ to execute on a complaint for foreclosure. three (3) months In the foreclosure suit, ______________gives public notice that the mortgaged property may soon have a judgment issued against it. This notice enables other lienholders to join in the suit against the defendant. a lis pendens If the defendant fails to meet the demands of the suit during a prescribed period, the court orders the termination of interests of any and all parties in the property, and orders the property to be sold. The court's __________________ authorizes an official, such as the county sheriff, to seize and sell the foreclosed property. writ of execution In Indiana, what are the rules to if you pay or not involving foreclosure? if the borrower reinstates before the court enters judgment, the foreclosure must be dismissed. if the borrower reinstates after judgment but prior to the sale, the foreclosure must be stayed (postponed). if the borrower subsequently misses another payment, the foreclosure can proceed. There is no redemption right in non- judicial foreclosure. In Indiana, there is no ________________. For parties involved in Indiana foreclosure actions, the bottom line is this: a foreclosure sale cuts off a the right of redemption. Parties can redeem right up to the sheriff's sale, but once the sale has taken place and title has transferred to a new owner, the defaulted borrower cannot reinstate the loan or get his/her home back. Statutory Right of Redemption. Indiana law permits land contract sellers ________________ provided the right is expressly stated in the sale contract. The seller simply takes back the property after a predetermined period of time once the buyer defaults. the right of forfeiture Indiana has reformed its laws to remedy the situation where a buyer defaults after completing many payments. If the buyer's equity in the property at the time of default is "significant," as defined by the law, the seller must institute formal _______________procedures and must compensate the buyer for accumulated equity before repossessing the property. foreclosure There are two situations in which a forfeiture is appropriate in Indiana: where there is an abandoning, absconding buyer where the buyer has paid a minimal amount on the contract at the time of default and seeks to retain possession while the seller is paying taxes, insurance, and other upkeep in order to preserve the premises What right does the lender have if a borrower defaults or stops making payments on a mortgage loan and how does this impact the borrower? The lender has the right to use the legal process of foreclosure which terminates the rights and title of the borrower. What are the two types of foreclosures? Judicial and non-judicial Since Indiana is a lien theory state and does not include a power of sale provision in its Code, how does this impact lenders who wish to foreclose on a property? Lenders have the right to foreclose only by using the judicial foreclosure process. What is the difference between equitable right of redemption and statutory right of redemption? Which is not allowed in Indiana? Equitable right of redemption gives the borrower the right to clear the debt prior to the foreclosure sale. Statutory right of redemption gives the borrower the right to clear the debt within a certain amount of time after the sale. Indiana has no statutory right of redemption. What has Indiana done that impacts a seller's right of forfeiture if the buyer defaults in a land contract? Indiana reformed its laws for cases where the buyer has significant equity in the property to require a seller to institute formal foreclosure procedures and compensate the buyer for accumulated equity before repossessing the property. 1 of 10 - Aside from forfeiture for default in a land contract, what is another option for the seller? Deficiency suit Non-judicial foreclosure Judicial foreclosure Eviction Judicial foreclosure 2 of 10 - The right to have a lender consider a borrower's ability to repay the loan before credit is extended is provided by ECOA. MBA Borrower's Bill of Rights. HUD's rights for borrowers. Regulation X. MBA Borrower's Bill of Rights. 3 of 10 - The regulation that applies to residential loans but not commercial loans is Regulation X. Regulation Z. ECOA. Dodd-Frank Act. Regulation Z. 4 of 10 - What provides the right to shop for the best loan and compare charges of different mortgage brokers and lenders? MBA ECOA HUD Regulation X HUD 5 of 10 - Which of the following is a right under the MBA Borrower's Bill of Rights? A borrower has the right to sue for deceptive marketing tactics. A borrower has the right not to have a lender consider the borrower's ability to repay the loan before credit is extended. A borrower has the right to have unfavorable information reported to credit reporting agencies on a timely basis. A borrower should receive an identifiable benefit when charged a fee or a higher interest rate to refinance a loan. A borrower should receive an identifiable benefit when charged a fee or a higher interest rate to refinance a loan. 6 of 10 - Which regulation requires lenders to disclose to buyers the true cost of obtaining credit so borrowers can compare various lenders? Regulation X Regulation Z Dodd-Frank Act Consumer Protection Act Regulation Z 7 of 10 - The right to rescind allows borrowers to cancel the transaction by returning the contract to the lender. notifying the mortgage broker within 5 days. notifying the lender within 3 days. contacting the credit agencies. notifying the lender within 3 days. 8 of 10 - Indiana does not allow statutory right of redemption. forfeiture. judicial foreclosure. equitable right of redemption. statutory right of redemption. 9 of 10 - After an equitable right of redemption has been exercised by the borrower, the loan is reinstated. In Indiana, which of the following is NOT true? If the borrower reinstates before the court enters judgment, the foreclosure must be postponed. If the borrower reinstates after judgment but prior to the sale, the foreclosure must be stayed. If the borrower subsequently misses another payment, the foreclosure can proceed.If the borrower reinstates after the sale of the property, the foreclosure must be dismissed. If the borrower reinstates after the sale of the property, the foreclosure must be dismissed. 10 of 10 - A borrower may execute his/her right to clear a debt prior to the sale of the property under lis pendens. equitable right of redemption. statutory right of redemption. right of reinstatement. equitable right of redemption. [Show Less]
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Real Estate Express Final Ch. 7, question and answer with rated solution
Which of the following phrases would usually be considered discriminatory advertising? a) Mother-in-law suite b) Females or males only c) Bachelor apart... [Show More] ment d) Master bedroom Females or males only If a fair housing case goes to an administrative hearing with HUD, who litigates the case for the complainant unless requested otherwise? a) Federal attorneys b) District attorneys c) Private attorneys d) HUD attorneys HUD attorneys Which of the following is an example of a reasonable accommodation? a) Installing a doorbell light signal for a hearing impaired tenant b) Widening doorways for an occupant who uses a wheelchair to pass c) Allowing a guide dog to reside with an occupant who has a visual disability d) Replacing doorknobs with levers for a tenant with arthritis Allowing a guide dog to reside with an occupant who has a visual disability If a licensee says "apartment complex with a chapel" in an ad, this is a) not discriminatory, because religious references are always acceptable. b) not discriminatory, because it does not indicate a preference for the kind of person who would use those facilities. c) discriminatory, because religious references are never acceptable. d) discriminatory, because the home discriminates against people who wouldn't use a chapel. not discriminatory, because it does not indicate a preference for the kind of person who would use those facilities An example of discrimination in lending is a) giving different terms for loans, such as interest rates or fees. b) stating or advertising that a property is restricted. c) telling people a property is not for sale when it is. d) refusing to negotiate with any person who is a member of a protected class. giving different terms for loans, such as interest rates or fees What term describes the act of restricting the number of loans in certain areas of a community because its racial or ethnic makeup? a) Steering b) Redlining c) Blockbusting d) Filtering Redlining Most real estate licensees do not realize it is illegal to a) discriminate based on race or national origin. b) provide reasonable accommodations to tenants with disabilities. c) misrepresent a client in order to earn more money. d) treat families with children differently than families without children. treat families with children differently than families without children When HUD receives a complaint, within how many days will it start an investigation? a) 30 b) 60 c) 75 d) 100 100 Which organization provides a variety of real estate related tips on practical applications of the Fair Housing Act? a) Fair Housing Association for Real Estate b) Commercial Real Estate Association c) National Association of REALTORS® d) Fair Housing Administration National Association of REALTORS In discrimination cases, who hears evidence and decides if discrimination occurred? a) An administrative law judge b) A district attorney c) A federal jury d) A state judge An administrative law judge Which of the following is NOT prohibited under the Fair Housing Act? a) Discriminatory advertising b) Steering c) Redlining d) Fiduciary duties Fiduciary duties If a licensee tells a person that a property is not for sale or rent when it actually is, this is considered a) discrimination in lending. b) discrimination in real estate. c) blockbusting. d) redlining. discrimination in real estate Civil rights laws in the real estate industry are designed to a) give everyone the same options when choosing housing. b) create a situation where people with similar financial means have similar choices when choosing housing. c) provide government assistance to find and qualify for housing accommodations. d) offer more affordable housing options to people with low income. create a situation where people with similar financial means have similar choices when choosing housing The civil penalty for a first time ADA violation suit by the Attorney General will not exceed a) $200,000. b) $100,000. c) $75,000. d) $50,000. $50,000 Questions about local schools or the ethnicity in a certain area should be answered by a) licensees. b) experts. c) brokers. d) attorneys. experts Which of the following is an example of discrimination in lending? a) Refusing to rent to a person who is a member of a protected class b) Discriminating when doing a property appraisal c) Advertising that a property is restricted d) Denying membership to a MLS service Discriminating when doing a property appraisal Which of the following is an example of blockbusting? a) An agent tells two different buyers different information about values in an area to influence one buyer into the neighborhood and the other out of the neighborhood. b) An agent advertises that only men without children are allowed to rent a particular property. c) An agent tells neighborhood owners that several minority families are moving and many people are moving because of the anticipation of value decline. d) An agent refuses to show a qualified buyer a new MLS listing. An agent tells neighborhood owners that several minority families are moving and many people are moving because of the anticipation of value decline The only situation when discrimination based on familial status may be legal is a) if the family is in the process of adopting a child. b) when a building qualifies as housing for older persons. c) when a woman is pregnant. d) when a relative has legal custody of a child. when a building qualifies as housing for older persons If the court determines discrimination did occur, which of the following is the complainant not entitled to receive? a) Actual damages b) Punitive damages c) Exploratory damages d) Attorney's fees and costs Exploratory damages Title VIII of the Civil Rights Act of 1968 is also known as a) the Equal Opportunity Act. b) the Fair Housing Act. c) the Familial Status Act. d) the Housing Development Act. the Fair Housing Act What term describes when HUD attempts to resolve a complaint by getting assurance from the person against whom the complaint was filed that he or she will remedy the alleged violation? a) Condonation b) Arbitration c) Conciliation d) Intervention Conciliation What is defined as a simulated housing transaction designed to obtain evidence of different treatment based on an individual's protected class status? a) Measuring b) Streaming c) Testing d) Blockbusting Testing What can an agent legally say if a buyer asks his or her opinion about a neighborhood? a) The agent can discuss his or her opinion on the areas demographics. b) The agent can say that mostly single moms and children live in the neighborhood. c) The agent can say that there are a large number of minorities in the neighborhood. d) The agent can make factual statements about the neighborhood's features, such as closeness of shopping or a park. The agent can make factual statements about the neighborhood's features, such as closeness of shopping or a park. What should a real estate professional do if it appears a seller is looking for a non-minority buyer? a) The agent should just ignore the seller. b) The agent should look for non-minority buyers. c) The agent should report the seller to HUD. d) The agent should advise the seller of his or her legal and contractual obligation not to discriminate. The agent should advise the seller or his or her legal and contractual obligation not to discriminate. Who is allowed to initiate actions for alleged violations of the Americans with Disabilities Act? a) The local district attorney b) Only the attorney general c) Only private citizens d) The attorney general and private citizens The attorney general and private citizens The best rule to avoid fair housing issues is to a) not be familiar with the law. b) talk about demographics whenever a buyer asks. c) treat everyone the same. d) have disorganized records. treat everyone the same. [Show Less]
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Real Estate Express Final Ch. 7, question and answer with rated solution
Which of the following phrases would usually be considered discriminatory advertising? a) Mother-in-law suite b) Females or males only c) Bachelor apart... [Show More] ment d) Master bedroom Females or males only If a fair housing case goes to an administrative hearing with HUD, who litigates the case for the complainant unless requested otherwise? a) Federal attorneys b) District attorneys c) Private attorneys d) HUD attorneys HUD attorneys Which of the following is an example of a reasonable accommodation? a) Installing a doorbell light signal for a hearing impaired tenant b) Widening doorways for an occupant who uses a wheelchair to pass c) Allowing a guide dog to reside with an occupant who has a visual disability d) Replacing doorknobs with levers for a tenant with arthritis Allowing a guide dog to reside with an occupant who has a visual disability If a licensee says "apartment complex with a chapel" in an ad, this is a) not discriminatory, because religious references are always acceptable. b) not discriminatory, because it does not indicate a preference for the kind of person who would use those facilities. c) discriminatory, because religious references are never acceptable. d) discriminatory, because the home discriminates against people who wouldn't use a chapel. not discriminatory, because it does not indicate a preference for the kind of person who would use those facilities An example of discrimination in lending is a) giving different terms for loans, such as interest rates or fees. b) stating or advertising that a property is restricted. c) telling people a property is not for sale when it is. d) refusing to negotiate with any person who is a member of a protected class. giving different terms for loans, such as interest rates or fees What term describes the act of restricting the number of loans in certain areas of a community because its racial or ethnic makeup? a) Steering b) Redlining c) Blockbusting d) Filtering Redlining Most real estate licensees do not realize it is illegal to a) discriminate based on race or national origin. b) provide reasonable accommodations to tenants with disabilities. c) misrepresent a client in order to earn more money. d) treat families with children differently than families without children. treat families with children differently than families without children When HUD receives a complaint, within how many days will it start an investigation? a) 30 b) 60 c) 75 d) 100 100 Which organization provides a variety of real estate related tips on practical applications of the Fair Housing Act? a) Fair Housing Association for Real Estate b) Commercial Real Estate Association c) National Association of REALTORS® d) Fair Housing Administration National Association of REALTORS In discrimination cases, who hears evidence and decides if discrimination occurred? a) An administrative law judge b) A district attorney c) A federal jury d) A state judge An administrative law judge Which of the following is NOT prohibited under the Fair Housing Act? a) Discriminatory advertising b) Steering c) Redlining d) Fiduciary duties Fiduciary duties If a licensee tells a person that a property is not for sale or rent when it actually is, this is considered a) discrimination in lending. b) discrimination in real estate. c) blockbusting. d) redlining. discrimination in real estate Civil rights laws in the real estate industry are designed to a) give everyone the same options when choosing housing. b) create a situation where people with similar financial means have similar choices when choosing housing. c) provide government assistance to find and qualify for housing accommodations. d) offer more affordable housing options to people with low income. create a situation where people with similar financial means have similar choices when choosing housing The civil penalty for a first time ADA violation suit by the Attorney General will not exceed a) $200,000. b) $100,000. c) $75,000. d) $50,000. $50,000 Questions about local schools or the ethnicity in a certain area should be answered by a) licensees. b) experts. c) brokers. d) attorneys. experts Which of the following is an example of discrimination in lending? a) Refusing to rent to a person who is a member of a protected class b) Discriminating when doing a property appraisal c) Advertising that a property is restricted d) Denying membership to a MLS service Discriminating when doing a property appraisal Which of the following is an example of blockbusting? a) An agent tells two different buyers different information about values in an area to influence one buyer into the neighborhood and the other out of the neighborhood. b) An agent advertises that only men without children are allowed to rent a particular property. c) An agent tells neighborhood owners that several minority families are moving and many people are moving because of the anticipation of value decline. d) An agent refuses to show a qualified buyer a new MLS listing. An agent tells neighborhood owners that several minority families are moving and many people are moving because of the anticipation of value decline The only situation when discrimination based on familial status may be legal is a) if the family is in the process of adopting a child. b) when a building qualifies as housing for older persons. c) when a woman is pregnant. d) when a relative has legal custody of a child. when a building qualifies as housing for older persons If the court determines discrimination did occur, which of the following is the complainant not entitled to receive? a) Actual damages b) Punitive damages c) Exploratory damages d) Attorney's fees and costs Exploratory damages Title VIII of the Civil Rights Act of 1968 is also known as a) the Equal Opportunity Act. b) the Fair Housing Act. c) the Familial Status Act. d) the Housing Development Act. the Fair Housing Act What term describes when HUD attempts to resolve a complaint by getting assurance from the person against whom the complaint was filed that he or she will remedy the alleged violation? a) Condonation b) Arbitration c) Conciliation d) Intervention Conciliation What is defined as a simulated housing transaction designed to obtain evidence of different treatment based on an individual's protected class status? a) Measuring b) Streaming c) Testing d) Blockbusting Testing What can an agent legally say if a buyer asks his or her opinion about a neighborhood? a) The agent can discuss his or her opinion on the areas demographics. b) The agent can say that mostly single moms and children live in the neighborhood. c) The agent can say that there are a large number of minorities in the neighborhood. d) The agent can make factual statements about the neighborhood's features, such as closeness of shopping or a park. The agent can make factual statements about the neighborhood's features, such as closeness of shopping or a park. What should a real estate professional do if it appears a seller is looking for a non-minority buyer? a) The agent should just ignore the seller. b) The agent should look for non-minority buyers. c) The agent should report the seller to HUD. d) The agent should advise the seller of his or her legal and contractual obligation not to discriminate. The agent should advise the seller or his or her legal and contractual obligation not to discriminate. Who is allowed to initiate actions for alleged violations of the Americans with Disabilities Act? a) The local district attorney b) Only the attorney general c) Only private citizens d) The attorney general and private citizens The attorney general and private citizens The best rule to avoid fair housing issues is to a) not be familiar with the law. b) talk about demographics whenever a buyer asks. c) treat everyone the same. d) have disorganized records. treat everyone the same. [Show Less]
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Bilder HUD question and answer latest updated
Pyoderma gangrenosum Kontaktallergiskt eksem Kontaktallergiskt eksem Intertrigo Nummulärt eksem Allergiskt kontakteksem... [Show More] Neurodermit Neurodermit Atopiskt eksem Staseksem Seborroiskt eksem Ektyma SSSS Follikulit Impetigo Erysipelas Erythema migrans Borrelialymfocytom Acrodermatitis chronica atrophicans Erythrasma Granulom (sarkoidos) Mycobacterium marinum Verucca vulgaris Verucca plantaris Verucca plana Herpetiskt eksem Herpes Zoster Mollusker Ringorm - tinea corporis tinea pedis - interdigital Tinea Pedis: Moccasin Type tinea unguium tinea cruris candida intertrigo Oral candida Pityriasis versicolor Ppp Lichen ruber planus Lichen naglar Pityriasis rosea Pityriasis rosea Pityriasis Rosea Guttat psoriasis Toxikodermi Pemfigoid Pemfigus Tularemi Erythema multiforme Erythema multiforme Akut CLE Ärr av kronisk CLE Kronisk CLE "diskoid lupus" Gottrons papler, dermatomyosit Sarkoidos Sarkoidos, lupus pernio Granuloma anulare Necrobiosis lipoidica Knölros Fototoxisk dermatit Lentigo Vitiligo Melasma ... ... Dermatitis herpetiformis Dermatitis herpetiformis Halo nevus Blått nevus Nevus spilus [Show Less]
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HUD Housing Counselor Module 4.1 & 4.2, question and answer| latest updated
A potential homebuyer with a minimal savings for a down payment and a low credit score is most likely to qualify for which mortgage? - United States Dep... [Show More] artment of Agriculture (USDA) - Federal Housing Administration (FHA) - Fannie Mae - Freddie Mac Federal Housing Administration (FHA) Which is the most significant benefit of using a real estate agent? - Marketing the home online - Obtaining a home inspection - Paying the sales commission - Negotiating the sale Negotiating the sale Which statement most accurately describes a member of the home buying team? - A real estate agent or broker is typically an attorney or works for an escrow company. S/he oversees the final transaction in property purchase, at which time the title is transferred from the seller to the buyer - The lender requires an assessment of the home by a home inspector before loan approval - An insurance agent is also known as a settlement agent - A home inspector is generally paid by the buyer A home inspector is generally paid by the buyer Which piece of advice would you give to clients as they begin the process of obtaining financing? - Never speak with lenders before setting on a home - Have all potential lenders pull credit within a 30-day window - Mortgages with adjustable rates are always best - Choose whichever lender is most prompt in returning your phone calls Have all potential lenders pull credit within a 30-day window All of the following is information necessary for your client to gather in preparation for filing out the URLA, except: - Figures related to income from child support - Figures related to student loans - The year the home was built - Referrals of past landlords Referrals of past landlords All of the following statements describe working with an appraiser during the "obtaining financing" step of purchasing a home, except: - It is improper for an appraiser to consider the racial or religious background of a neighborhood's residents to determine the value of a home - Lenders hire appraisers - Home buyers can cancel the offer contract if the contract includes a contingency clause - Home buyers rarely are allowed to see the appraisal information and for that reason are encouraged to get a home inspection Home buyers rarely are allowed to see the appraisal information and for that reason are encouraged to get a home inspection A client is shopping for a loan and submits a loan application to a lender with an accepted contract at 123 Maple St. The client asks for information about possible settlement costs, but the lenders says that he needs to see the purchase contract in order to move forward with the process. The lender should have provided which item? - Uniform Residential Loan Application (URLA) - Ability to Pay & Qualified Mortgage Rule (ATR/QM) - Loan Estimate - Closing Disclosure Loan Estimate A client spoke with five lenders. Four of the five lenders quoted interest rates between 4.1% and 4.6%. One lender mentioned a 3.1% interest rate if she signed for it within the next 36 hours. She was very interested in this loan, so she asked for more information (conditions and fees). The lender provided some information about the loan, but nothing included the APR. Which regulation deems this practice unlawful? - Equal Credit Opportunity Act (ECOA) - Real Estate Settlement Procedures Act (RESPA) - Truth in Lending Act (TILA) - Home Ownership and Equity Protection Act (HOEPA) Truth in Lending Act (TILA) A certain mortgage company encourages all its clients to use a specific appraiser. The appraisers give the mortgage company $100 for every one of its clients who comes to them. if the mortgage company does not tell clients about the payment it receives for referrals, this is a breach of which regulation? - Equal Credit Opportunity Act (ECOA) - Real Estate Settlement Procedures Act (RESPA) - Truth in Lending Act (TILA) - Home Ownership and Equity Protection Act (HOEPA) Real Estate Settlement Procedures Act (RESPA) A twenty-eight year old single women was denied a loan. When she asked for the reason, she was told that the lender had given loans to women her age in the past and no longer would. he found that within a few years ,they were not able to make their monthly payments because they had children and stopped working or cut back to part-time work. Which regulation deems this practice unlawful? - Equal Credit Opportunity Act (ECOA) - Real Estate Settlement Procedures Act (RESPA) - Truth in Lending Act (TILA) - Home Ownership and Equity Protection Act (HOEPA) Equal Credit Opportunity Act (ECOA) Which type of coverage would a consumer file a claim with when...a family must rent an apartment for one month while their home is being repaired after a windstorm - Personal Liability Coverage - Structural Coverage - Medical Payment Coverage - Loss of Use Coverage Loss of Use Coverage Which type of coverage would a consumer file a claim when...A gutter system is destroyed in a hailstorm and must b e repaired. - Personal Liability Coverage - Structural Coverage - Medical Payment Coverage - Loss of Use Coverage Structural Coverage Which type of coverage would a consumer file a claim when...A guest gets carbon monoxide poisoning from a home that has a gas leak an no carbon monoxide detector and sues the homeowner - Personal Liability Coverage - Structural Coverage - Medical Payment Coverage - Loss of Use Coverage Personal Liability Coverage Which type of coverage would a consumer file a claim when...A guest at a home slips on a wet floor and breaks a bone. S/he does not sue the homeowner - Personal Liability Coverage - Structural Coverage - Medical Payment Coverage - Loss of Use Coverage Medical Payment Coverage During a pre-purchase counseling session, a client mentions that he wants to make an offer on a home situated near a stream that historically floods in heavy rain storms. Which statement would be an appropriate response for a housing counselor to give him? - I recommend that you purchase homeowners' insurance because it will cover damage done to your home if flooded by water from the nearby stream - It is important that you get medical payment coverage if you are going to live near a stream. Children could get injured playing in or near the s stream - I would advise you to purchase earthquake insurance if you decide to close on that house. Earthquakes can often cause massive waves in bodies of water, which could flood nearby homes. With earthquake insurance, any damage done by these types of floods will be covered. - Before you close on the home, it may be wise to factor in the cost of flood insurance. Since your home will be next to a stream, flood insurance could be critical; however, the added annual expense of flood insurance may make the home an unaffordable option for you. Before you close on the home, it may be wise to factor in the cost of flood insurance. Since your home will be next to a stream, flood insurance could be critical; however, the added annual expense of flood insurance may make the home an unaffordable option for you. Which best describes the home inspection and closing process - Not all closing costs are due at closing - There is no value in having a real estate attorney or housing counselor review the agreement of sale before clogging - Home inspectors estimate the value of a home and make certain it is marketable - Your clients will receive the keys and the title when they give the seller their earnest money Not all closing costs are due at closing Which items is critical to consider when working with a client to prepare a household system maintenance plan? - Finance Rate - Target Replacement Date - Local Tax Codes - Cost of Original Item Target Replacement Date Which strategy most effectively increases a home's energy efficiency? - Use ground fault indicator outlets - Install an automatic garage door opener - Increase attic insulation - Cover windows with permanent storm shutters Increase attic insulation Which best describes the ENERGY STAR program? - A mandatory program that helps individual save money and protect the climate through superior energy efficiency - A voluntary program that helps individuals save money and protect the climate through superior energy efficiency - A voluntary program that helps businesses and individuals save money and protect the climate through superior energy efficiency - A mandatory program that helps businesses and individuals save money and protect the climate through superior energy efficiency A voluntary program that helps businesses and individuals save money and protect the climate through superior energy efficiency Which action would most likely increase the energy efficiency of a home? - Keep electrical cords in good condition and positioned appropriately - Repair caulking on windows - Repair cracks in driveways and walkways - Clean chimneys Repair caulking on windows Which should a housing counselor recommend that a client include in a household maintenance plan? - Ratings for energy efficiency resources - Limits of homeowner's insurance coverage - Coverage for home warranty - Strategist for financing a home improvement loan Coverage for home warranty Under which condition would most down payment assistance programs approve a waiver of the home ownership education requirement? - most will not waive the home ownership education requirement - When the home buyer has a verifiable disability or handicap - When the home buyer has successfully passed a home ownership exam - When the home buyer has completed four years of college most will not waive the home ownership education requirement Delinquency on which type of payment can cause a lien to be placed on a client's property? - Home warranty payments - Homeowners association dues - Mortgage insurance payments - Homeowners insurance payments Homeowners association dues Which is a possible outcome for member residents if a homeowner's association (HOA) imposes a community assessment? - Residents would be provided the HOA's annual report, including an evaluation of the community - Residents would be required to pay a share of expenses related to capital improvements to the common areas - Residents would be requested to complete a community assessment survey about property management performance - Residents would be required to complete a community survey assessing community-wide activities and programs Residents would be required to pay a share of expenses related to capital improvements to the common areas A new homeowner purchased home four months ago and received a notice that he owes $3,000 in two weeks for special assessment. Client does not have $3,000 to spare. What will happen if client does not pay it? All of the following are accurate except: - Yes, assessments are always difficult to pay because they are always announced just a few weeks before the funds are due - Special assessments are funds collected to pay for large projects such as repairing the roof of a condominium complex - The possible consequence of late payment or non- payment are similar to that of property taxes and HOA fees - The previous homeowner should have disclosed information regarding pending assessments before you purchased the home Yes, assessments are always difficult to pay because they are always announced just a few weeks before the funds are due To complete an effective maintenance plan for a household system, all of the following would be critical for a client to research, except: - Items covered by a home warranty or a product warranty - Estimated life of home television - Savings for purchasing a refurbished system rather than a new system - Upkeep techniques that may extend the life of a system Estimated life of home television Which items should be included in an emergency preparedness plan? - Purchase a safety deposit box at a bank - Obtain identification bracelets for all family members - Store 30 days worth of food - Identify a meeting location outside the immediate area Identify a meeting location outside the immediate area A client with limited financial resources wants to improve safety in the home to prepare for natural disasters. Which his the best resource for the client to use in researching this topic? - Ready.gov - HUD.gov - Energy.gov - NOAA.gov Ready.gov Which would be the best location to identify in a household emergency preparedness plan as a safe place to meet in the event of an evacuation? - The nearest police station - The family's home - A local hospital - A motel in a neighboring community A motel in a neighboring community All of the following are critical components of an emergency plan, except: - A home escape route - Meeting location outside the immediate area - Safe room - Identification bracelets for each family member Identification bracelets for each family member Client wants to complete a project over the course of a year. She plans to purchase materials herself and wants to buy them in phases, buying only what she needs for each project phase at the time that it begins. She will be hiring an architect to draw up the project plans. She expects the project will cover over $25,000 and would like a lengthy period of time to pay off the expenses Which financing option would the housing counselor recommend to the client? - Home Equity Loan - Home Equity Line of Credit (HELOC) - Streamlined 203k Loan - Title 1 Loan Home Equity Line of Credit (HELOC) A client wants to remodel basement over next 12 months. Project should cost under $24,000 and wants to borrow money at a very low interest rate that can be paid off over a longer period of time. Which financing option would work best? - FHA 203K Loan - Home Equity Line of Credit (HELOC) - Home Equity Loan - Energy Efficient Mortgage (EEM) Home Equity Line of Credit (HELOC) Client intends to purchase a home that needs major structural repairs and will make those repairs with funding rolled into a mortgage loan Which financing option would the housing counselor recommend to the client? - FHA 203K Loan - Cash Out Refinance - Home Equity Loan - Streamlined 203k Loan FHA 203K Loan Client is considering refinancing her home. All the following would be beneficial for client, except: - She will pay a monthly mortgage payment that is $20 less than her initial payment - She will have a fixed-rate loan rather than an adjustable-rate loan that had a low initial rate - She is required to pay for mortgage insurance on her original loan and owes 72% of the home's value - She will have a significantly lower interest rate She will pay a monthly mortgage payment that is $20 less than her initial payment Which of the following is true about the process of selling a home? - The seller should disclose the property's repair history - The seller can always trust real estate agents to protect his/her best interest - The home buyer cannot negotiate to have any repair work completed on the home - The seller must hire a real estate agent or broker to sell the home The seller should disclose the property's repair history [Show Less]
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Fair Housing Complaint Process, question and answer
Who can file a complaint? Anyone who is willing to sign his name and give contact info. Where does a complainant get the correct form? The regiona... [Show More] l HUD office in Dallas or online at www.hud.gov Where are complaints filed? HUD regional office or office of Louisiana Attorney General. How long does a complainant have in which to file a complaint? If the complaint is filed w/HUD, one year , if filed in Federal Court 2 years. Steps in the Complaint Process 1. Notification 2. Conciliation 3. Complaint Referral 4. Quick Action 5. Complaint Assessment 6. Adminstrative Hearing Notification HUD will notify a complainant when it receives a complaints normally HUD also will 1. Notify the alleged violator of the complaint and permit that person to submit an answer. 2. Investigate the complaint and determine whether there is reasonable cause to believe the Fair Housing Act has been violated. 3.Notify the complainant if it cannot complete an investigation within 100 days of receiving a complaint. Conciliation HUD will try to reach an agreement with the person a complaint is made against (the respondent) Complaint Referral 1. If HUD has determined that a state or local agency has the same fair housing powers as HUD,HUD will refer complaints to that agency for investigation and notify complainants of the referral. 2. That agency must begin work on the complaint within 30 days or HUD may take it back. Quick Action If a complainant needs immediate help to stop a serious problem that is being caused by a Fair Housing Act Violation HUD maybe able to assist him as soon as he files a complaint. HUD may authorize the Attorney General to go to court to seek temporary or preliminary, relief, pending the outcome of the complaint, if.. 1. Irreparable harm is likely to occur without HUD intervention. 2. There is substantial evidence that a violation of the Fair Housing Act occurred. Complaint Assessment 1. If, after investigating a complaint HUD finds reasonable cause to believe that discrimination occurred, it will inform the complainant. 2. The case will be heard in an administrative hearing within 120 days, unless the complainant or the respondent wants the case to be heard in Federal district court. Administrative Hearing If the case goes to an administrative hearing, HUD attorneys will litigate the case on behalf of the complainant ( If the Administrative Law Judge decides the discrimination occurred, the respondent can be ordered) 1. To compensate the complainant for actual damages, including humiliation, pain and suffering. 2. To provide injunctive or other equitable relief, for example to make the housing available to the complainant. 3. To pay the Federal Government a civil penalty to vindicate the public interest. The maximum penalties are $11,000 for 1st violation and $55,000 for a third violation, within 7 years 4. To pay reasonable attorney's fees and costs. Federal District Court The attorney general will file a suit and litigate it on behalf of the complainant. Like the ALA, the district court can order relief and award actual damages, attorneys fees and costs. In addition, the court can award punitive damages. [Show Less]
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HUD Exam - Housing Affordability, question and answer| qualified
All of the following are true statements about upfront costs associated with renting and buying, except; A. Renters generally pay a security deposit upon ... [Show More] signing a lease. B. The average cost due upon signing a lease for a rental is typically between 20% of the monthly rent.. C. Closing costs are typically comprised of lender fees, discount points, title insurance, home inspection fees, escrow deposit, property taxes, private mortgage insurance, and attorney's fees. D. A client who desires to purchase a home worth $150,000 could be required to pay $7,000 in standard closing costs. B. The average costs due upon signing a lease for a rental is typically 20% of the monthly rent. -This statement is not true. However, the figure of 20% is relevant for those considering buying a home (down payment). A couple, the Smiths, recently scheduled a meeting with Rebecca. They have owned their home for seven years and have accumulated some equity in the home. However, they are now struggling to pay their mortgage, because the wife left her full-time job when she had a baby. Her husband's salary is paid in installments of $900 a week, which are subject to deductions and other withholdings. Each month, they pay $1,000 in principal and interest, $110 for taxes, $130 for insurance, and $20 in homeowners assessments. What is their current front-end ratio (as a whole number with no decimal point)? 32% Formula: Gross monthly income = Total weekly pay before deuctions x 52 / 12 Front end ratio = Monthly housing expenses / Gross monthly Income. One option that Rebecca suggests to the Smiths is to sell their home and rent a home that is smaller and more affordable. If the Smiths decide to do this, they will no longer have a mortgage, so what is the maximum amount that they can afford to pay in rent and renters insurance each month? Tip: Recall that the husband 's salary is paid in installments of $900 a week, which are subject to deductions and other withholdings. $1,170 If the Smiths sell their home and purchase a more affordable property, what is the maximum amount that is affordable for the Smiths to pay in PITIA each month if they obtained a conventional loan? Tip: Recall that the husband 's salary is paid in installments of $900 a week, which are subject to deductions and other withholdings $1,092 The Smiths explain to Rebecca that they've already found a smaller, more affordable home they've considered buying. It would cost them $990 each month in PITIA. Considering they pay $210 in car loan obligations, $50 in student loan payments, and a minimum of $80 total in credit card payments each month, and assuming all of these loan payments will be recurring for more than ten months, what would their back-end ratio be if they purchased the home? 34% Typically, what is the maximum back-end ratio that the Smiths could have in order to be approved for a conventional mortgage? 36% If the Smiths decide to apply for a new loan to buy the more affordable home, which would support the approval of their application? A. Insufficient capital to cover the down payment B. Poor credit history C. inconsistent employment D. High gross annual income D. High gross annual income A client has $25,000 in savings and a credit score of 740. She plans to keep some savings in reserves and has identified additional funds to cover closing cost. He/She would like to buy a $100,000 home and is steadily employed. What loan option would be best for this client? Conventional Another client would like to buy a $100,000 home and is steadily employed. This client has $2,000 in ssavings and a credit score of 600. His family makes 60% AMI. He lives in a small rural town and would like to buy a farm. What loan option would be best for this client? USDA A client has $2,500 in savings and a credit score of 690. Family members have offered to contribute to down payment costs to help him buy the home. FHA Another client, Michael, is contemplating applying for an adjustable rate mortgage. All of the following would be accurate and applicable information for his counselor to share with him, except: A. The interest rate can go down, but it is also as likely to go up. B. Michael can request for the interest rate to adjust at any time. C. There are caps on how much the interest rate can adjust. D. If Michael chooses to use his VA benefit, he can take out an ARM. B. Michael can request for the interest rate to adjust at any time. - The bank determines when the interest rate adjusts. Sara is almost ready to purchase her first home. Which criteria would decrease the likelihood that she could obtain an affordable mortgage? A. She has saved $10,000 and is looking to purchase a home for $150,000. B. Almost 6% of her monthly income goes to paying her student loans. C. Her credit score is 577 due to several collection accounts. D. Her debt-to-income ratio is 33% C her credit score is 577 due to several collection accounts. -A low credit score will deter most lenders from offering financing to a borrower because they have a history of not handling debt well. Or, lenders may offer financing with a higher interest rate, which can make the mortgage unaffordable. Which statement best describes private mortgage insurance? A. It protects the borrower in case of default due to job loss B. It can be used for FHA mortgages. C. It always includes an upfront premium and monthly charge. D. It protects the lender in case the borrower defaults. It protects the lender in case the borrower defaults. D. It protects the lender in case the borrower defaults. -Mortgage insurance, in general aims to insure the lender against losses. If a client chooses to obtain a conventional mortgage through a private lender, when can she request that the lender remove the PMI from her monthly payments? A. When the mortgage balance is 90% of the original value of the home B. When the mortgage balance is 80% of the original value of the home C. When the mortgage balance is 78% of the original value of the home D. When the morgage balance is 60% of the original value of the home. B. When the mortgage balance is 80% of the original value of the home All of the following describe the Housing Choice Voucher Program (Section 8) except: A. Moves due to changes in family size or job location are allowed. B. Landlords cannot provide unsanitary housing or charge a high rent. C. Vouchers are provided to participants directly from the local HUD office D. Elderly renters can participate in the program. C. Vouchers are provided to participants directly from the HUD office. -Local public housing authorities distribute vouchers to program participants. [Show Less]
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HUD Housing Counseling Exam, question and answer, graded A+
Civil Rights Act of 1866 Federal law granting citizenship to former slaves; passed over Johnson's veto. (Race and Color) Fair Housing Act of 1968 ... [Show More] banned discrimination in the rental or sale of housing (Race, color, religion, national origin) Housing and Community Development Act of 1974 added gender (sex) to the protected classes Fair Housing Amendments Act of 1988 Added Disability and familial status to protected classes. Real Estate Settlement and procedures Act RESPA Requires lenders and brokers to ensure that applicants understand the terms and fees of the mortgage transaction that they are considering Home Mortgage Disclosure Act (HMDA) Requires financial institutions to maintain and annually disclose date about home purchases, home purchase pre-approvals, home improvements and refinance applications involving 1 to 4 unit and multifamily dwellings Electronic Communications Privacy Act Prohibits persons from tampering with computers or accessing certain computerized records without authorizations. The Act also prohibits providers of electronic communications services from disclosing the contents of stored communications. Community Reinvestment Act CRA A congressional act that encourages mortgage originators to actively lend in their communities and that requires financial institutions to evaluate the "fairness" of their lending practices. Restricts the collection and use of information that would result in housing discrimination on the basis of race, sex, religion, national origin and a variety of other factors. Fair Housing Act Prohibits discrimination by direct providers of housing, such as landlords and real estate companies as well as other entities, such as municipalities, banks of other lending institutions and homeowners insurance companies whose discriminatory practices make housing unavailable to persons because of: Race or Color, Religion, Sex/Gender, National Origin, Familial Status, Disability.. Fair Housing Statute Opens up services and employment opportunities to the 43 million Americans with disabilities. Americans with Disabilities Act ADA Protects consumers from abusive, unfair, and deceptive practices by third-party debt collectors. Fair Debt Collection Practices Act FDCPA Prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because you get public assistance. Equal Credit Opportunity act ECOA Restrictions collections of use of information that would result in employment discrimination on the basis of race, sex, religion, national origin and a variety of other characteristics. Equal Employment Opportunity Act EEOC Mandates that personal data be collected as much as possible directly from the record subject. Privacy Act Requires each of the nationwide consumer reporting companies: Equifax, Experian, and Transunion to provide you with a free copy of your credit report, at your request, one every 12 months The Fair and Accurate Credit Transactions Act FACTA Prevents identity theft, improve resolution of consumer disputes, improve the accuracy of consumer records, make improvements in the use of, and consumer access to, credit information, and for other purposes. The Fair Credit Billing Act FCBA Applies to "open end" credit accounts, such as credit cards, and revolving charge accounts - such as department store accounts. Fair Credit Reporting Act FCRA Prohibits opening of mail without a search warrant or the addressee's consent Mail Privacy Statute Amends the Truth in Lending Act (TILA) and establishes requirements for certain loans with high rates and/or high fees Home Ownership and Equity Protection Act HOEPA All of the following would help a counselor develop a realistic household budget, except: - Payment information for a paid-off car - Amount spent on groceries - Rent payment information - Monthly cable bill Payment information for a paid-off car The following are good ways to decrease expenses except: - Cancel car insurance - Cancel cable service - Brown bag lunch for work - Rent videos instead of going to the movies Cancel car insurance Steps to create an Action Plan - State goal - Identify obstacles - Agree on livable budget - Steps with dates to achieve goal - List who is responsible for steps - Signature (optional) - follow up and update Which of the following is not needed in determining a budget? - Pay stubs - Credit report - Utility bill - Child support - Stock dividends Credit report Stock dividends Tran would like to take a vacation and needs $3,000. He has $400 saved already. If he wants to take a trip in 18 months how much will he need to save monthly? $145 Which section of a credit report contains information about student loans? - Inquiries - Public records - Account Information - Consumer Rights -Personal Information Account information What makes up a credit score? 35% - Account History 30% - Amounts Owed 15% - Length of Credit History 10% - New Credit 10% - Types of Credit Fair Credit Reporting Act (FCRA) - Right to know what is in your file - Right to dispute incomplete or inaccurate information - Access to your file is limited - May seek damages from violators - May have additional state rights Fair and Accurate Credit Transactions Act (FACTA) - Right to a free annual credit report - Right to place a fraud alert for 90 days - Credit card numbers must be truncated Fair Credit Billing Act (FCBA) - Dispute errors on account (within 60 days) - Must be billed in timely manner (at least 14 days before payment is due) Items to include when tracking income - regular salary - temporary jobs - unemployment compensation - public assistance How to calculate income if the amounts varies month to month Average it out over 12 months Items NOT to include when calculating income - Pre-tax payroll deductions - Credit score Documents to use to calculate income - paychecks, direct deposit slips - if self-employed, income and expense sheet - additional income checks or cash - Government benefits letters (SSI, unemployment, etc) Items to include when tracking expenses - all bills - all fixed monthly expenses - all cash expenses - seasonal or annual expenses (holidays, gifts, vacations) Documents to use to track expenses - Utility, insurance and other bills - Bank statements - Credit card statements - Records about car registration, school supplies etc. All of the following are reasons why it is important for a client to track income and expenses before finalizing a budget, except: -It helps show clients that they actually spend less on some expenses than they think. - It helps identify spending habits. - It helps show clients that their spending and expenses are out of control. - It helps define realistic and attainable goals and timelines. It helps show clients that their spending and expenses are out of control. What are the secondary steps to help clients develop a realistic budget? - Examine content in the budget worksheet - Ask client what she has discovered about income and spending habits - Ask client if she thinks her goals are achievable - Coach client on strategies for defining needs over wants - Walk through strategies for adjusting goals and budget - Develop a client action plan that includes client actions/tasks and time frames Strategies for increasing income 1. Find a second job 2. Work overtime 3. Negotiate higher salary/wage 4. Sell assets (e.g., car) 5. Hold a yard sale 6. Teach a skill/craft/activity 7. Sell a craft 8. Charge rent (if adult dependents in home) 9. Evaluate tax withholdings Strategies for decreasing expenses 1. Prioritize needs vs. wants 2. Reduce or eliminate "wants" (e.g., clothes, gym) 3. Cancel or downgrade services (e.g., cable, telephone 4. Limit miscellaneous spending 5. Stick to a shopping list 6. Reduce debt (pay off a loan or credit card) 7. Move to more affordable housing 8. Change insurance coverage for lower premiums, but don't cancel Which of the following is a "want" and not a "need"? Health Care Premium Car Insurance Gym Membership Rent Gym Membership All of the following are effective ways to decrease expenses, except: Cancel insurance policy Cancel cable service Stick to a shopping list Conserve energy in the home Cancel insurance policy All of the following are effective strategies to increase income, except: Work over time Teach yoga Find a second job Factor in an anticipated raise Factor in an anticipated raise Identify which information is used in determining a budget, and which is not. Pay Stub Bank Statements Utility Bills Social Security Award Letter Annual Bonus Stock Dividends Employer Reimbursements Credit Score Include: Pay stub Bank statements Utility Bills Social Security Award Letter Not to include: Annual Bonus Stock Dividends Employer Reimbursements Credit Score Ray's commute on the bus takes over an hour, so he wants to buy a car as soon as possible, but he has poor credit and cannot obtain a loan right now. He thinks he can find a reliable car for about $2,000 and has about 20% of the total in the bank from his tax refund. If Ray's goal is to buy a car within 8 months, what is the minimum amount he needs to save each month? $150 $175 $200 $225 $200 What information is collected by a credit bureau? 1. History of accounts 2. Number of inquiries 3. Number of collections What personal information is included in a credit report? 1. Name 2. Social security number 3. Addresses 4. Phone numbers 5. Employers What account/trade information is included in a credit report? 1. Payment history 2. Account dates, 3. Credit limits 4. Balance owed What public records information is included in a credit report? 1. Bankruptcy 2. Judgments 3. Tax liens 4. Wage garnishments What inquiries are included in a credit report? 1. Requests initiated by a company or a person for a consumer's credit profile information. Payment History - Indicators of good and bad credit Positive - Timely payment history demonstrates reliability Negative - Late payment history demonstrates higher risk of future delinquency Capacity used - Positive and Negative Positive - Low credit utilization demonstrates good financial management Negative - High credit card balances demonstrate poor financial management Length of Credit History - Positive and Negative Positive - Longer credit history provides more information for lenders, which means lower risk Negative - Shorter credit history provides little or no information for lenders, which means higher risk Type of Credit Used - Positive and Negative Positive - Different types of credit show variety. Variety shows lenders that consumers can manage different types of credit Negative - Fewer types of credit show limited profile information to lenders, which means a higher risk New Credit - Positive and Negative Positive - credit applications can lead to new credit accounts or loans, which can establish credit over time. Negative - Too many inquiries or new credit accounts in a short period of time will raise questions to lenders Which section of a credit report will contain employer details: - Consumer Rights - Account Information - Personal Information - Public Records - Inquiries Personal Information Which section of a credit report will contain information about a student loan? - Personal information - Public records - Inquiries - Consumer rights - Account information Account information Which section of a credit report will contain court information such as bankruptcy? -Public records -Inquiries -Personal information -Consumer rights -Account information Public records Which section of a credit report will show recent attempts to open a credit card? - Personal information - Public records - Consumer rights - Inquiries - Account information Inquiries Which section of a credit report will contain information about how to correct inaccuracies? - Personal information - Consumer rights - Public records - Inquiries - Account information Consumer Rights What is a credit score? a number assigned to a person that indicates to lenders their capacity to repay a loan. (credit worthiness) FICO score Fair Isaac Corporation - scores ranges from 300 - 850 Account History The payment history of an account over a specific period of time, including the number of times the account was past due or over limit. (35%) Amounts Owed ratio of total credit extended to the amount if credit owed (30%) Length of Credit History overall length of credit history in the credit report, as well as the average age of accounts (15%) New Credit number of recent credit inquiries, as well as new credit accounts (10%) Types of Credit Used variety of accounts (e.g. credit card, auto loan, mortgage) (10%) Easiest way to order a credit report? www.annualcreditreport.com What to do if incorrect information on your credit report? 1. Notify credit reporting agencies of inaccuracies 2. Keep records of dispute documentation What to do if delinquencies/collections/judgement are on your credit report? 1. Get current and pay on time moving forward 2. Set up payment reminders 3. Adjust budget to factor in all monthly payments What to do if credit card is maxed out/too much debt? 1. Pay down debt and keep balances low 2. Pay more than the minimum 3. Know what the balance is 4. Check statements What to do if no credit/poor credit/ limited credit? 1. Open a credit card account Which complies with fair credit laws? - An employer can check a credit report at any time. - A vendor can display part of the credit card number on the sales receipt. - A credit reporting agency can list information about a collection over eight years old. - A creditor can acknowledge a consumer dispute after two months. A vendor can display part of the credit card number on the sales receipt Which federal law protects a consumer's right to dispute a billing error associated with his or her credit card account? -Fair and Accurate Credit Transactions Act (FACTA) -Fair Credit Reporting Act (FCRA) -Fair Credit Billing Act (FCBA) Fair Credit Billing Act Four steps of asset building 1. Choose the right bank or credit union account. 2. Build savings for emergencies and large purchase. 3. Invest for retirement. 4. Take advantage of tax credits Account maintenance/service fee Fee charged by a financial institution for account maintenance. Wire transfer fee Fee charged when a client sends a payment to another account electronically Check purchasing fee Fee charged when a client purchases checks. Money orders and cashiers check fee fee charged when a client obtains a money order or cashier's check. Overdraft fee Fee charged when an account does not have enough money to cover a purchase and the financial institution loans money to complete the payment. Overdraft protection transfer fee Fee charged when an account with overdraft protection does not have enough money to cover a purchase and funds are transferred from another linked account to cover it. Stop payment fee Fee charged to stop payment on a check before the check is cashed. Non-sufficient funds/returned item fee NSF fee is charged if there is not enough money in an account to cover a check payment or other purchase. ATM transaction limit/check-writing limit fee Fee charged if a consumer exceeds an allotted number of ATM transactions or writes more than the allotted number of checks in a month What is a liquid account? money can be retrieved quickly without taxes or penalties. What is a limited accessibility account? interest bearing savings accounts and money market accounts Examples of accounts that would be ideal for short-term large purchase savings include: 1. High interest savings accounts 2. Money market 3. CD All of the following arguments will be valuable to share with a client to help them understand the importance of an emergency fund, except: - Emergency funds can be used to cover living expenses while Jill looks for a new job, If she is laid off. - Emergency funds placed in a liquid account can be retrieved when needed without taxes or penalties. - Emergency funds will be available to use to purchase an electronic game for her daughter when Jill finds a great sale. - It is ultimately cheaper to pay for emergency expenses from an emergency fund rather than on credit. Emergency funds will be available to use to purchase an electronic game for her daughter when Jill finds a great sale. Which is the most appropriate use of emergency funds: - Contributing to a mutual fund - Upgrading a refrigerator - Establishing a retirement fund - Repairing the transmission on a car Repairing the transmission on a car To explain the importance of establishing a retirement fund, you can present all of the following arguments, except: - Her company might "match" a portion of the retirement funds that she contributes. - She could benefit from certain tax incentives - She could borrow against the retirement investment if she has an immediate need for cash. -Her investment could grow more if she begins investing earlier. She could borrow against the retirement investment if she has an immediate need for cash. Earned income tax credit Also known as the EITC, a refundable federal income tax credit for low- to moderate-income working individuals and families, even if they did not earn enough money to be required to file a tax return. Educational tax credit person who is post-secondary educational program, or who are supporting children in a post-secondary program Child and Dependent Care Tax Credit Helps families reduce their child care costs by allowing them to deduct up to $5,000 of these costs from their federal tax obligation Common Predatory Lending Practices 1. Limited time offers 2. High-risk loans (balloon payment, pre-payment penalties) 3. Higher loan amounts 4. High fees or costs 5. False or hidden disclosures 6. Loan flipping Tips to avoid predatory lending 1. Shop for a loan 2. Ask questions 3. Beware of to good to be true 4. Know your financial situation Identity theft checklist 1. Place a fraud alert 2. Order credit reports 3. Obtain an Identity Theft Affidavit from the FTC 4. File a police report Chapter 7 Bankruptcy Liquidation - Process of selling non-exempt assets to repay creditors. Means Test A bankruptcy qualification that considers income and equity in assets to determine if a client has the ability too repay part of the debt. (Chapter 7) Two types of bankruptcy Chapter 7 and Chapter 13 Chapter 13 bankruptcy Wage earner's plan - develop a plan to repay all or part of the debt over 3 - 5 years. All of the following are immediate steps a client should take in the event of identity theft, except: - Create an identity theft report - Contact the insurance company - Order credit reports from the credit reporting agencies - Place a fraud alert Contact the insurance company In some cases, bankruptcy may be the best option for a client. Which of the following options would be the least appropriate for a housing counselor to present as an alternative? - Debt management plan (DMP) - Household budget adjustment - Loan modification - Negotiation with creditors - Wait seven years for accounts to drop from credit report Wait seven years for accounts to drop from credit report It is the responsibility of the counselor to determine whether or not a client should file bankruptcy. True False False Renting Advantages - defer most repairs, maintenance - avoid hassle of paying property tax - mobility Renters Responsibilites - pay rent on time - comply with rules and guidelines - care for the property Renting disadvantages - cannot build equity - limited control over decorating - no tax benefits Renting upfront costs - application fee - security deposit - first and last months rent - pet deposit Buying advantages - control over decisions related to living environment - settle into a community/ school system - no home inspections by landlords - ability to modify home - tax benefits - build equity Buying responsibilites - make monthly payment - uphold standards and rules set by HOA - carry out and fund home repairs Equity value of ownership interest in property. Difference between the fair market value of a property and the remaining mortgage balance owed. Foreclosure The seizure of property from borrowers who are unable to repay their loans Renters Insurance Covers your personal property in a rented apartment or home. Discount points A fee charged by the lender at settlement that results in increasing the lender's effective yield on the money borrowed. One discount point equals one percent of the loan amount. Default failure to pay back a loan - mortgage loans are typically considered in default when a payment has not been made after 60 - 90 days. Escrow Funds to be used for specific purposes by parties carrying out a mutual transaction, deposited with a third party. Commonly used by lenders to allocate funds for a homeowner's property taxes, insurance premiums, or other fees when they become due. Down Payment A cash payment that home buyers are typically required to pay when closing on a home loan which represents a percentage of the total price of the home. Closing Costs Fees for final property transfer that are not included in the price of the property. Typical closing costs can include loan origination fees, discount points, appraisal fee, survey, title insurance, legal fees, prepayment of taxes and insurance, etc. Range of closing costs 3 to 4% of the purchase price of the home. Homeowners Insurance An insurance policy that can provide coverage for damages to a dwelling and contents that belong to the homeowner. Additionally, it can offer protection to homeowners against losses resulting from liability claims from accidents occurring on the property. Homeowners insurance is mandatory for most homeowners with mortgages to obtain. Ben obtains a mortgage for $90,000, which is the most likely amount that he will pay for closing costs? -$1,000 -$3,500 -$7,000 -$10,000 $3,500 Front-End Ratio A rate that calculates a borrower's housing-related obligations as a percentage of gross monthly income. Frequently used by lenders to qualify borrowers for a mortgage. Also called a housing ratio. Conventional Loan A mortgage loan backed by private lenders. Though not insured by any government program, such as the FHA or VA, loans with a down payment less than 20% of the purchase price may require private mortgage insurance. Conventional loan ratios 28/36% FHA Mortgage ratios 31/43% Renters ratios 30/36% PITIA Principal, interest, taxes, Insurance, association dues Principal The amount of money borrowed to buy a house or the amount of the loan that has not been paid back to the lender. Interest Interest is the interest rate the bank charges you for borrowing their money. Taxes Property taxes charged by the county in which your home is located. Proceeds pay for education, law enforcement, and other services. These are mandatory and typically costs 1% of the value annually Mortgage insurance premium (MIP) a monthly payment -usually part of the mortgage payment - paid by a borrower for mortgage insurance. Private Mortgage insurance (PMI) insurance policy that protects the mortgage lender from loss in the event the borrower defaults on the loan; typically required by lenders when the down payment is less than 20% Association Dues Charged by community or Homeowners Association to pay for repairs, upkeep, landscaping, improvements, and property management Ground Rent An arrangement in which the owner of a dwelling or structure does not own the land on which the structure resides. In such cases, the borrower takes out a mortgage to purchase the dwelling, but must still pay rent for the land. Hourly gross monthly income calculation total hourly pay before deductions x hours per week x 52 weeks per year / 12 Weekly gross monthly income calculation total weekly pay before deductions x 52 / 12 Bi-weekly gross monthly income calculation total bi-weekly pay before deductions x 26 / 12 Semi-monthly gross monthly income calculation total semi-monthly pay before deductions x 2 Self Employed gross monthly income calculation Average adjusted gross income from tax returns and/or profit and loss statements / the number of months of income counted Adjusted Gross Income Gross income minus adjustments, or reductions. Profit and Loss Statement A summary of revenue, costs, and expenses incurred during a defined period, such as a fiscal year. All of the following are true statements about upfront costs associated with renting and buying, except: -Renters generally pay a security deposit upon signing a lease. -The average cost due upon signing a lease for a rental is typically between 20% of the monthly rent. -Closing costs are typically comprised of lender fees, discount points, title insurance, home inspection fees, escrow deposit, property taxes, private mortgage insurance, and attorney's fees. -A client who desires to purchase a home worth $150,000 could be required to pay $7,000 in standard closing costs. The average cost due upon signing a lease for a rental is typically between 20% of the monthly rent. [Show Less]
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Humanitarian Use Devices (HUDs) question and answer 100% correct
Although not required by regulation, which of the following actions does FDA guidance recommend for clinical use of a HUD outside of its approved indicatio... [Show More] n(s)? Restrict use outside of approved indication(s) for situations that meet emergency use criteria. Obtain informed consent from the patient and ensure that reasonable patient protection measures are followed. Request that the HDE holder submit an HDE supplement to obtain FDA approval of use outside of the approved indication(s). Limit use outside of approved indication(s) as these uses count towards the FDA-assigned number of devices allowed to be shipped or sold in a year. Obtain informed consent from the patient and ensure that reasonable patient protection measures are followed. Which of the following statements is true regarding IRB approval of clinical use of a HUD in a healthcare facility? Since a HUD is a marketed device, the regulations do not require IRB approval for clinical use. The clinician obtains initial IRB approval and ensures continuing review approval by the IRB. After initial approval, the FDA allows an IRB to determine if it will require ongoing continuing review. Since a HUD is a marketed device, the regulations prohibit an IRB from imposing restrictions on clinical use of a HUD. The clinician obtains initial IRB approval and ensures continuing review approval by the IRB. All of the following regulatory requirements apply to an investigation of a HUD consistent with the HDE approved indication(s), EXCEPT: Human subject protection requirements. Financial disclosure requirements. HIPAA authorization requirements. Investigational Device Exemption requirements. Investigational Device Exemption requirements. An investigation to collect data on a new indication of a significant risk HUD requires: IRB approval and a revised Humanitarian Use Device (HUD) designation. IRB approval and an Investigational Device Exemption (IDE). IRB approval without an Investigational Device Exemption (IDE). IRB approval and a revised Humanitarian Device Exemption (HDE). IRB approval and an Investigational Device Exemption (IDE). FDA approval of a Humanitarian Device Exemption (HDE) is based on all of the following criteria EXCEPT: Probable benefit to health outweighs the risk. Assurance of safety and effectiveness. No comparable marketed device is available to treat or diagnose the disease or condition. The manufacturer could not otherwise bring the device to market. Assurance of safety and effectiveness. A clinician may use a HUD without IRB approval: In a clinical investigation to collect data on an HDE approved indication. For compassionate use where no alternative device is available for a patient's condition. If the clinician determines that approval from an IRB cannot be obtained in time to prevent serious harm or death to a patient. For clinical use only. If the clinician determines that approval from an IRB cannot be obtained in time to prevent serious harm or death to a patient. The two-step process of obtaining an FDA marketing approval for a HUD includes: Submitting a pre-market approval (PMA) to FDA then obtaining a HUD designation. Obtaining a HUD designation then submitting HUD use to an IRB. Obtaining a HUD designation then submitting a pre-market approval (PMA) to the FDA. Obtaining a HUD designation then submitting a Humanitarian Device Exemption (HDE) to the FDA. Obtaining a HUD designation then submitting a Humanitarian Device Exemption (HDE) to the FDA. A Humanitarian Use Device (HUD) is a medical device: Used to treat or diagnose a disease or condition that affects not more than 8,000 individuals in the U.S. annually. [Show Less]
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