Housing Counselor Certification (HUD) Practice Exam

What was the primary purpose of the Making Home Affordable program?

1. To assist homeowners in avoiding foreclosure.

2. To fund new construction for low-income families.

3. To provide financial literacy education to first-time homebuyers.

4. To increase home equity for homeowners.

The correct answer is: To assist homeowners in avoiding foreclosure.

The primary purpose of the Making Home Affordable program was to assist homeowners in avoiding foreclosure. The program was launched in the aftermath of the housing crisis and aimed to provide relief to struggling homeowners through various initiatives, such as loan modifications and refinancing options. By enabling borrowers to modify their loans to more affordable terms, the program sought to stabilize the housing market and reduce the number of foreclosures across the country. This focus on preventing foreclosure was crucial during a time when many families faced economic difficulties, thereby preserving homeownership and community stability. The other options include funding new construction, which was not the intent of the program; providing financial literacy education, which was not its primary focus; and increasing home equity, which is a secondary effect rather than a primary aim. The core mission clearly centered on assisting homeowners to retain their homes and avoid foreclosure.