Housing Counselor Certification (HUD) Practice Exam

Which type of information is included in the Uniform Residential Loan Application (URLA)?

1. Employment history

2. Credit score

3. Asset information

4. Educational background

The correct answer is: Asset information

The Uniform Residential Loan Application (URLA) serves as a standardized form used by lenders to collect essential information about the borrower’s financial situation and overall creditworthiness. This application captures various aspects of a borrower's profile to assist in the loan underwriting process. Asset information is a critical component of the URLA, as it details the borrower’s financial resources and can include bank account balances, the value of real estate owned, stocks, and other investments. This information helps lenders assess the borrower's capacity to repay the loan and provides insight into their financial stability. It demonstrates the borrower's ability to make a down payment and manage ongoing loan payments based on their available assets. In contrast, while employment history and credit scores are important aspects of a borrower's financial profile, they are documented through different sections and criteria on the URLA. Educational background is not typically relevant to the loan application process, as the lender focus is on financial stability, income, and a borrower’s ability to repay the loan rather than their educational achievements. Thus, asset information remains a key aspect included in the URLA, directly influencing the lending decision.