I85PREP
⌘ K
AL MLO study materials
AL MLO study resources

AL MLO practice questions

One question at a time. Build your AL MLO understanding.

First 50 of 200 questions. Each one lists the choices, the correct answer, and an explanation. The checker at the top of this page saves progress in this browser when it is available.

Continue in the practice tool above to load more questions, 50 at a time.

Question 1Federal Mortgage-Related Laws

Which federal law is the primary statute governing the licensing and registration of mortgage loan originators?

  1. The Real Estate Settlement Procedures Act
  2. The Home Mortgage Disclosure Act
  3. The Secure and Fair Enforcement for Mortgage Licensing Act Correct answer.
  4. The Fair Credit Reporting Act

Explanation

The SAFE Act, enacted in 2008 as part of HERA, established a national framework for licensing and registering mortgage loan originators and directed creation of the NMLS registry. RESPA, HMDA, and FCRA address other areas of mortgage and consumer credit regulation.

Question 2Federal Mortgage-Related Laws

Under the SAFE Act, a mortgage loan originator license applicant must complete pre-licensing education of at least how many hours?

  1. 12 hours
  2. 40 hours
  3. 8 hours
  4. 20 hours Correct answer.

Explanation

The SAFE Act requires at least 20 hours of pre-licensing education, including specified hours on federal law and ethics, plus a minimum number of hours on lending standards and mortgage origination.

Question 3Federal Mortgage-Related Laws

Under the SAFE Act, a licensed mortgage loan originator must complete how many hours of continuing education annually?

  1. 20 hours
  2. 10 hours
  3. 8 hours Correct answer.
  4. 6 hours

Explanation

The SAFE Act sets annual continuing education at 8 hours, which must include instruction on federal law and ethics, lending standards, and other required topics.

Question 4Federal Mortgage-Related Laws

Which statute requires lenders to provide a Loan Estimate within three business days of receiving a mortgage application?

  1. The Equal Credit Opportunity Act
  2. The Truth in Lending Act as implemented by Regulation Z Correct answer.
  3. The Fair Housing Act
  4. The Flood Disaster Protection Act

Explanation

TILA, as amended by Dodd-Frank and implemented through Regulation Z's TRID rules, requires delivery of the Loan Estimate within three business days of application. ECOA, the FHA, and the Flood Disaster Protection Act impose different obligations.

Question 5Federal Mortgage-Related Laws

Under the Truth in Lending Act, a consumer has a right to rescind a covered refinance transaction secured by a principal dwelling until when?

  1. Seven calendar days after application
  2. Ten days after closing in all cases
  3. Three business days after consummation or delivery of required disclosures, whichever is later Correct answer.
  4. Until the first payment is due

Explanation

TILA gives the consumer three business days after consummation, or after delivery of the material disclosures and notice of the right to rescind, whichever is later, to cancel certain dwelling-secured loans.

Question 6Federal Mortgage-Related Laws

Under RESPA, when must a lender deliver the special information booklet to a borrower applying for a federally related mortgage loan?

  1. No later than three business days after receiving the application Correct answer.
  2. At the closing table
  3. Within 30 days of closing
  4. Only if the borrower requests it

Explanation

Regulation X requires the special information booklet to be provided no later than three business days after the lender receives the application, unless an exception applies.

Question 7Federal Mortgage-Related Laws

Under RESPA Section 8, which arrangement is prohibited?

  1. A title company charging a fee disclosed on the settlement statement
  2. A lender paying a fee to a settlement provider for services actually performed
  3. A real estate agent receiving a fee from a lender for referring a borrower Correct answer.
  4. A borrower paying discount points to reduce the interest rate

Explanation

RESPA Section 8 prohibits giving or receiving anything of value in exchange for the referral of settlement service business. Payments for services actually rendered and disclosed fees are permissible.

Question 8Federal Mortgage-Related Laws

Under RESPA, how long must a lender retain the initial escrow account statement and related records?

  1. Three years
  2. Ten years
  3. One year
  4. Five years Correct answer.

Explanation

Regulation X requires retention of escrow account records, including the initial and annual escrow statements, for five years after the related servicer or lender relationship ends.

Question 9Federal Mortgage-Related Laws

Under the Equal Credit Opportunity Act, a creditor must notify an applicant of adverse action within how many days after receiving a completed application?

  1. 30 days Correct answer.
  2. 60 days
  3. 45 days
  4. 10 days

Explanation

ECOA and Regulation B require notice of adverse action within 30 days after receiving a completed application. Counteroffer notifications follow a similar 30-day rule.

Question 10Federal Mortgage-Related Laws

Under Regulation B, which characteristic is a prohibited basis for credit discrimination?

  1. Income level
  2. Debt-to-income ratio
  3. Credit score
  4. Marital status Correct answer.

Explanation

ECOA prohibits discrimination on bases including race, color, religion, national origin, sex, marital status, age, and receipt of public assistance. Credit score, income, and DTI are permissible underwriting factors when applied consistently.

Question 11Federal Mortgage-Related Laws

Under the Home Mortgage Disclosure Act, which lender is generally required to report mortgage loan data?

  1. Only government-backed lenders
  2. Only credit unions
  3. A depository institution meeting asset and location tests, or a non-depository lender meeting volume thresholds Correct answer.
  4. Any lender with no physical office anywhere

Explanation

HMDA, implemented by Regulation C, applies to depository institutions meeting asset and geographic tests and to non-depository mortgage lenders that meet loan volume thresholds.

Question 12Federal Mortgage-Related Laws

Under HMDA, what is the required reporting threshold for a closed-end mortgage loan in recent years for non-depository institutions?

  1. 100 loans in each of the two preceding years
  2. 25 loans in each of the two preceding years Correct answer.
  3. 50 loans in each of the two preceding years
  4. 500 loans in each of the two preceding years

Explanation

Regulation C sets the closed-end loan volume threshold for non-depository lenders at 25 originated closed-end loans in each of the two preceding calendar years, subject to periodic adjustment.

Question 13Federal Mortgage-Related Laws

The Fair Housing Act prohibits discrimination in residential real estate transactions based on which set of protected classes?

  1. Only national origin and marital status
  2. Only age and income
  3. Only race and religion
  4. Race, color, religion, sex, handicap, familial status, and national origin Correct answer.

Explanation

The Fair Housing Act's protected classes are race, color, religion, sex, handicap, familial status, and national origin. Marital status and age are ECOA protections, not FHA classes.

Question 14Federal Mortgage-Related Laws

A lender uses a borrower's receipt of public assistance income in underwriting. Under ECOA, the lender must treat that income how?

  1. Consider it on the same basis as other income if it is likely to continue Correct answer.
  2. Require a co-signer whenever it is present
  3. Reduce it by a fixed percentage automatically
  4. Exclude it entirely from consideration

Explanation

ECOA prohibits discrimination based on receipt of public assistance; a creditor must consider such income to the extent it is likely to be consistently received, on the same basis as other income.

Question 15Federal Mortgage-Related Laws

Under the Flood Disaster Protection Act, when is flood insurance required on a property securing a federally related loan?

  1. When the property is in a Special Flood Hazard Area in a participating community Correct answer.
  2. Only if the loan exceeds the conforming limit
  3. Whenever the borrower lives near any body of water
  4. Only on commercial loans

Explanation

The FDPA requires flood insurance for improved real property securing a federally related loan when the property is located in a Special Flood Hazard Area of a participating community.

Question 16Federal Mortgage-Related Laws

If a lender discovers at closing that a property in a Special Flood Hazard Area lacks required flood insurance, what must the lender do?

  1. Require flood insurance before closing and, if not obtained, force-place coverage Correct answer.
  2. Convert the loan to an unsecured loan
  3. Close the loan and ignore the gap
  4. Reduce the loan amount by half

Explanation

The FDPA and Regulation H require flood insurance as a condition of the loan; if the borrower fails to obtain it, the lender must force-place coverage and may charge the borrower.

Question 17Federal Mortgage-Related Laws

Under the Fair Credit Reporting Act, when a lender takes adverse action based on a consumer report, what must it provide the applicant?

  1. Nothing until the applicant requests it
  2. Only a verbal explanation
  3. A copy of the full credit report and the applicant's credit score only
  4. A notice of adverse action with the credit reporting agency's contact information and the applicant's right to dispute Correct answer.

Explanation

FCRA requires an adverse action notice identifying the credit reporting agency, stating that the agency did not make the decision, and informing the applicant of the right to obtain a free report and dispute inaccuracies.

Question 18Federal Mortgage-Related Laws

Under the Fair Credit Reporting Act, a consumer reporting agency generally must investigate a disputed item within what period?

  1. 30 days Correct answer.
  2. 90 days
  3. 7 days
  4. 15 days

Explanation

FCRA requires consumer reporting agencies to conduct a reasonable reinvestigation of disputed information, generally within 30 days of receiving the dispute.

Question 19Federal Mortgage-Related Laws

Under the Homeowners Protection Act, when must a lender cancel private mortgage insurance on a borrower-requested basis?

  1. Immediately upon the borrower's first payment
  2. Only when the loan is fully repaid
  3. At the borrower's request once the loan reaches 80 percent of the original value, with good payment history and other conditions met Correct answer.
  4. Never, because PMI cannot be cancelled

Explanation

The HPA allows borrowers to request PMI cancellation when the principal balance reaches 80 percent of the original property value, provided the borrower has a good payment history and satisfies other conditions. Automatic termination generally occurs at 78 percent.

Question 20Federal Mortgage-Related Laws

Under the Homeowners Protection Act, automatic termination of PMI generally occurs when the loan reaches what percentage of the original property value?

  1. 78 percent Correct answer.
  2. 90 percent
  3. 75 percent
  4. 70 percent

Explanation

The HPA requires automatic termination of PMI on the termination date when the principal balance is scheduled to reach 78 percent of the original value, if the borrower is current.

Question 21Federal Mortgage-Related Laws

Under the Secure and Fair Enforcement for Mortgage Licensing Act, an MLO's unique identifier must be provided to the consumer at what point?

  1. Only upon written request
  2. Before the consumer signs the loan application or at the time of the initial disclosure Correct answer.
  3. Only at closing
  4. Only after the loan funds

Explanation

The SAFE Act and Regulation Z require the MLO's unique identifier to be disclosed to the consumer at the time of the initial application disclosure or before the consumer signs the application.

Question 22Federal Mortgage-Related Laws

Under Regulation Z's ability-to-repay rule, which factor must a creditor consider?

  1. The borrower's membership in a social club
  2. The borrower's preferred lender
  3. The borrower's political affiliation
  4. The borrower's current and reasonably expected income or assets Correct answer.

Explanation

The ATR rule requires creditors to consider eight underwriting factors, including current and reasonably expected income or assets, employment status, monthly payment, and debt-to-income ratio.

Question 23Federal Mortgage-Related Laws

A creditor extends a higher-priced mortgage loan. Under Regulation Z, which requirement applies to escrow accounts for such loans?

  1. No escrow is ever permitted
  2. Escrow is required only for investment properties
  3. Escrow may be waived by the creditor at will
  4. An escrow account must generally be established, subject to limited exemptions Correct answer.

Explanation

Regulation Z generally requires escrow accounts for higher-priced mortgage loans secured by a principal dwelling, with limited exemptions such as certain rural or small-creditor circumstances.

Question 24Federal Mortgage-Related Laws

Under the Fair Housing Act, which practice is an example of illegal steering?

  1. Advertising in multiple languages
  2. Providing the same loan products to all applicants regardless of race
  3. Directing applicants to neighborhoods or products based on their race or national origin Correct answer.
  4. Documenting income consistently for all applicants

Explanation

Steering involves directing prospective borrowers or buyers to particular areas or loan products based on protected characteristics, which violates the Fair Housing Act. Consistent treatment and inclusive advertising are lawful.

Question 25Federal Mortgage-Related Laws

Under the Truth in Lending Act, which disclosure must a creditor provide to a borrower at or before consummation of a closed-end mortgage loan?

  1. The adverse action notice
  2. The annual escrow statement
  3. The special information booklet only
  4. The Closing Disclosure Correct answer.

Explanation

Regulation Z's TRID rules require the Closing Disclosure at least three business days before consummation for most closed-end mortgage loans, summarizing final loan terms and costs.

Question 26Federal Mortgage-Related Laws

Under the Real Estate Settlement Procedures Act, which disclosure must a mortgage servicer provide to a borrower at the time of loan origination or transfer of servicing?

  1. A summary of the loan officer's compensation plan
  2. A copy of the lender's internal underwriting guidelines
  3. A profit-and-loss statement for the originating lender
  4. A servicing transfer statement describing the current and prospective servicers Correct answer.

Explanation

RESPA requires that borrowers be informed of the identity of the servicer and any transfer of servicing. The servicing transfer statement gives the current servicer, the new servicer, and the effective date of transfer.

Question 27Federal Mortgage-Related Laws

Under the Truth in Lending Act, a creditor must generally give the borrower the right to rescind a covered refinance transaction within how many days after consummation or delivery of the required disclosures, whichever is later?

  1. Three business days Correct answer.
  2. Thirty calendar days
  3. Seven calendar days
  4. One business day

Explanation

TILA gives borrowers a three-business-day right to rescind certain non-purchase, non-business-purpose loans secured by a principal dwelling. The period runs from consummation or delivery of the material disclosures, whichever occurs later.

Question 28Federal Mortgage-Related Laws

Under the Fair Housing Act, which transaction is covered by the prohibition on discriminatory practices?

  1. Commercial office leasing only
  2. Residential mortgage lending and home sales Correct answer.
  3. Only new construction sales
  4. Only transactions involving government-insured loans

Explanation

The Fair Housing Act covers the sale, rental, and financing of dwellings, including residential mortgage lending. It applies broadly to housing-related transactions, not just government-insured loans.

Question 29Federal Mortgage-Related Laws

Under the Secure and Fair Enforcement for Mortgage Licensing Act, a mortgage loan originator's unique identifier must be provided to the consumer in which manner?

  1. Only after closing
  2. Orally at the first contact
  3. In writing before the consumer signs a loan application Correct answer.
  4. Only if the consumer requests it

Explanation

SAFE Act rules require MLOs to provide their unique identifier to consumers in writing at the time of application or before the consumer signs. The identifier links the MLO to the Nationwide Mortgage Licensing System registry.

Question 30Federal Mortgage-Related Laws

Under the Homeowners Protection Act, automatic termination of private mortgage insurance generally occurs when the loan reaches what percentage of the original property value, provided payments are current?

  1. 80 percent
  2. 85 percent
  3. 78 percent Correct answer.
  4. 90 percent

Explanation

The Homeowners Protection Act requires automatic termination of PMI when the loan balance reaches 78 percent of the original value, assuming the borrower is current. Borrower-requested cancellation may occur at 80 percent.

Question 31Federal Mortgage-Related Laws

Under the Flood Disaster Protection Act, which situation triggers the mandatory purchase requirement for flood insurance?

  1. The loan-to-value ratio exceeds 80 percent
  2. The borrower has a prior flood claim
  3. The property is in a Special Flood Hazard Area and secures a federally related loan Correct answer.
  4. The property is within 100 miles of any coastline

Explanation

The mandatory purchase requirement applies when improved property is in a Special Flood Hazard Area and secures a loan from a federally regulated lender. The borrower must maintain coverage for the life of the loan.

Question 32Federal Mortgage-Related Laws

Under the Equal Credit Opportunity Act, a creditor must generally notify an applicant of adverse action within how many days after receiving a completed application?

  1. Thirty days Correct answer.
  2. Sixty days
  3. Ten days
  4. Twenty days

Explanation

Regulation B requires notice of adverse action within 30 days after receiving a completed application. A counteroffer or other permitted action may alter the specific notice, but the general deadline is 30 days.

Question 33Federal Mortgage-Related Laws

Under the Fair Credit Reporting Act, when a creditor denies credit based on information in a consumer report, what must the creditor provide?

  1. A copy of the consumer's entire credit file
  2. The credit score of the loan officer
  3. A written apology from the creditor
  4. A notice of adverse action with the reporting agency's contact information and a statement of rights Correct answer.

Explanation

FCRA requires an adverse action notice identifying the consumer reporting agency, stating that the agency did not make the decision, and providing the consumer's right to obtain a free report and dispute information.

Question 34Federal Mortgage-Related Laws

Under Regulation Z's ability-to-repay rule, which factor must a creditor consider when evaluating a closed-end consumer mortgage?

  1. The borrower's social media activity
  2. The borrower's current and reasonably expected income and debts Correct answer.
  3. The appraiser's years of experience
  4. The lender's quarterly profit margin

Explanation

The ATR rule requires creditors to consider eight underwriting factors, including income, debts, employment status, and residual income. The goal is to ensure the borrower can repay the loan.

Question 35Federal Mortgage-Related Laws

A lender is preparing to close a loan secured by a dwelling located in a Special Flood Hazard Area. The borrower has no flood insurance. What must the lender do before closing?

  1. Close the loan and require insurance within 90 days
  2. Waive the requirement if the loan is small
  3. Require flood insurance coverage before closing and maintain it for the loan term Correct answer.
  4. Rely on the borrower's promise to obtain coverage later

Explanation

Lenders may not close a federally related loan on improved property in a Special Flood Hazard Area without required flood insurance. Coverage must be maintained for the life of the loan.

Question 36Federal Mortgage-Related Laws

Under RESPA Section 8, which arrangement between a lender and a real estate agent is prohibited?

  1. Paying a fee for referrals of settlement service business Correct answer.
  2. Providing a generic brochure about loan products
  3. Sharing publicly available rate information
  4. Attending a joint marketing event with no exchange of value

Explanation

RESPA Section 8 prohibits giving or receiving anything of value in exchange for referrals of settlement service business. Unearned fees and kickbacks are unlawful.

Question 37Federal Mortgage-Related Laws

A creditor uses a borrower's public assistance income in underwriting. Under ECOA, how must the creditor treat that income?

  1. Exclude it because it is not earned
  2. Discount it by fifty percent automatically
  3. Consider it the same as other income if it is likely to continue Correct answer.
  4. Require a co-signer as a condition of using it

Explanation

ECOA prohibits discrimination based on receipt of public assistance income. Creditors must consider such income in the same manner as other income if it is lawful, reliable, and expected to continue.

Question 38Federal Mortgage-Related Laws

A mortgage loan originator is meeting a first-time homebuyer. When must the MLO provide the special information booklet required under RESPA?

  1. After the loan is approved
  2. Only if the borrower requests it
  3. At closing only
  4. Within three business days after receiving the loan application Correct answer.

Explanation

RESPA requires the special information booklet to be delivered within three business days after the lender receives a written application for a federally related mortgage loan. The booklet explains settlement costs and the borrower's rights.

Question 39Federal Mortgage-Related Laws

Under Regulation Z, a creditor originates a higher-priced mortgage loan secured by a principal dwelling. Which requirement applies to escrow accounts for such loans?

  1. An escrow account must generally be established and maintained for a minimum period Correct answer.
  2. Escrow is required only if the borrower is a first-time buyer
  3. Escrow is optional and may be waived without restriction
  4. Escrow accounts are prohibited for higher-priced loans

Explanation

Regulation Z requires creditors to establish and maintain escrow accounts for higher-priced mortgage loans for a minimum period, generally five years, subject to limited exceptions. This helps ensure taxes and insurance are paid.

Question 40Federal Mortgage-Related Laws

A loan servicer receives a qualified written request from a borrower disputing an escrow charge. Under RESPA, what is the servicer generally required to do?

  1. Ignore the request unless it is notarized
  2. Acknowledge receipt within five business days and respond substantively within a set period Correct answer.
  3. Close the escrow account immediately
  4. Forward the request to the borrower's real estate agent

Explanation

RESPA requires servicers to acknowledge a qualified written request within five business days and provide a substantive response within the regulatory timeframe. The servicer must also refrain from certain adverse actions during the investigation.

Question 41Federal Mortgage-Related Laws

A lender's marketing materials for a mortgage product describe the loan as 'no cost' while the borrower actually pays origination fees. Which federal law is most directly implicated?

  1. The Homeowners Protection Act
  2. The Secure and Fair Enforcement for Mortgage Licensing Act
  3. The Fair Credit Reporting Act
  4. The Truth in Lending Act and its advertising rules Correct answer.

Explanation

TILA and Regulation Z regulate mortgage advertising and prohibit misleading representations about loan terms and costs. Advertising a loan as having no cost when fees are charged can violate these rules.

Question 42Federal Mortgage-Related Laws

Under HMDA, which information must a covered lender report for a mortgage loan application?

  1. The applicant's credit score and the loan officer's name
  2. The applicant's political affiliation
  3. The real estate agent's commission
  4. The applicant's race, ethnicity, sex, and the loan's purpose and amount Correct answer.

Explanation

HMDA requires covered lenders to collect and report data including applicant demographics, loan purpose, loan amount, and action taken. The data helps identify discriminatory lending patterns.

Question 43Federal Mortgage-Related Laws

Under the Fair Housing Act, which practice constitutes illegal steering?

  1. Telling a buyer that homes in a particular neighborhood are 'not for people like you' and directing them elsewhere Correct answer.
  2. Providing a list of all available listings in the area
  3. Requiring a home inspection for every purchase
  4. Offering the same loan terms to all qualified applicants

Explanation

Steering occurs when a housing provider directs a buyer toward or away from neighborhoods based on protected characteristics. Such conduct violates the Fair Housing Act.

Question 44Federal Mortgage-Related Laws

A creditor is required to provide a Loan Estimate to a borrower applying for a closed-end mortgage. Under TILA, when must the Loan Estimate generally be delivered?

  1. Within three business days after receiving the application Correct answer.
  2. After the appraisal is completed
  3. Only at closing
  4. At least seven business days before consummation

Explanation

The Loan Estimate must be delivered or placed in the mail no later than three business days after the creditor receives the application. It summarizes the loan terms, projected payments, and closing costs.

Question 45Federal Mortgage-Related Laws

A consumer reporting agency receives a dispute from a consumer about an item in their credit file. Under FCRA, the agency generally must complete its reinvestigation within what period?

  1. Ten days
  2. Ninety days
  3. Thirty days Correct answer.
  4. Forty-five days

Explanation

FCRA generally requires consumer reporting agencies to reinvestigate disputed information within 30 days. The period may be extended to 45 days if the consumer provides additional information during the reinvestigation.

Question 46Federal Mortgage-Related Laws

A loan officer learns that a borrower is receiving disability income. Under ECOA, how may the lender treat that income?

  1. It may be excluded because it is not from employment
  2. It may be used only for refinance transactions
  3. It must be considered if it is reliable and expected to continue Correct answer.
  4. It may be considered only if the borrower is over 50

Explanation

ECOA prohibits discrimination based on receipt of income from a public assistance program, including disability income. Creditors must evaluate such income on the same basis as other income.

Question 47Federal Mortgage-Related Laws

A lender discovers after closing that a property in a Special Flood Hazard Area lacks the required flood insurance. What is the lender's most appropriate course of action?

  1. Take no action because the loan has already closed
  2. Waive the requirement permanently
  3. Immediately accelerate the loan without notice
  4. Notify the borrower and purchase force-placed flood insurance if coverage is not obtained Correct answer.

Explanation

When required flood insurance lapses or was never obtained, the lender must notify the borrower and may force-place coverage. The lender must also ensure compliance with the mandatory purchase requirement going forward.

Question 48Federal Mortgage-Related Laws

A creditor is evaluating whether a loan is a higher-priced mortgage loan under Regulation Z. Which comparison is used to make that determination?

  1. The loan's annual percentage rate compared with the average prime offer rate Correct answer.
  2. The appraised value compared with the purchase price
  3. The borrower's credit score compared with the national average
  4. The loan's late fee compared with the late fee on credit cards

Explanation

The higher-priced mortgage loan threshold is based on the loan's annual percentage rate relative to the average prime offer rate for a comparable transaction. If the APR exceeds that benchmark by the specified margin, the loan is a HPML.

Question 49Federal Mortgage-Related Laws

A servicer receives a borrower's request to cancel private mortgage insurance. Under the Homeowners Protection Act, cancellation is generally available when the borrower requests it and which condition is met?

  1. The borrower has made at least twelve payments regardless of balance
  2. The loan balance has reached 80 percent of the original value and the borrower is current Correct answer.
  3. The loan has been outstanding for at least one year
  4. The property has appreciated by any amount

Explanation

The HPA permits borrower-requested cancellation when the loan balance reaches 80 percent of the original property value and the borrower has a good payment history. The servicer must also satisfy any other statutory conditions.

Question 50Federal Mortgage-Related Laws

A mortgage lender's underwriter considers an applicant's receipt of housing assistance as a negative factor. Which federal law is most directly violated?

  1. The Real Estate Settlement Procedures Act
  2. The Equal Credit Opportunity Act Correct answer.
  3. The Homeowners Protection Act
  4. The Home Mortgage Disclosure Act

Explanation

ECOA and Regulation B prohibit discrimination based on an applicant's receipt of public assistance income, including housing assistance. Treating such income as a negative factor violates the statute.