HI Board vs FHA

[Marc]

At a recent Louisiana Board meeting, no motion was granted to exempt FHA fee inspectors from the requirements of Louisiana Home Inspector Licensing Law. FHA fee inspectors confirm code compliance and have nothing in common with the purpose of HIs, yet an exemption was denied based on the Board's expressed opinion that FHA fee inspectors should possess a license of some sort in order to be qualified to serve as FHA fee inspectors.

Perhaps the Board needs to change its title to 'Louisiana State Board of Fee Inspectors'.

It's a clear case of arrogance if you ask me.

Marc

[hausdok]

We took the same decision here in Washington.

The fee isn't the issue; fees collected from a tiny number of inspectors on an FHA roster don't amount to squat. Inspectors on the FHA roster are still doing home inspections for the citizens of this state and those citizens are still relying on those FHA inspectors to be qualified and competent. That's the issue.

Arrogance is when an inspector tells others that he's not going to comply with the state's rules that are designed to protect its citizens and then that inspector tries to go on as usual performing inspections without a license by calling them "FHA inspections."

The FHA issued a directive last year that FHA inspectors were required to meet all licensing requirements in their respective states.

ONE TEAM - ONE FIGHT!!!

Mike

[Marc]

We're not on the same page just like the LA Board and I last Friday. 'Fee Inspector' is the term that the FHA uses to describe inspectors found qualified to complete a HUD 92051 Compliance Report. The 92051 is a form that was created by HUD and the FHA uses it. It's the equivalent of an AHJ sticker on the meter box or panel-board that tells whether it passed the muni inspection or not. That's all the FHA wants.

The home inspections that the citizens had to pay for were not even requested by them. They just wanted what the FHA wanted so that they can get approved for the FHA loan. The FHA just wants to confirm that the house is built to code. they don't give a hoot about what a home inspector has to say because the inspection that Home inspectors do is not a code inspection. A home inspection report is an opinion report and a code inspection is objective. Two different things.

The FHA does not want a Fee Inspector that has been approved by them to break any state laws so if a state that regulates home inspectors says 'if ya fill out a HUD 92051 Compliance Report, you gotta have a home inspection license and also complete a home inspection and home inspection report' then the FHA wants their Fee Inspectors in that state to have a license but only to stay legal. The FHA and the citizen that applied for an FHA loan don't give a hoot about what a home inspection might say.

It's wrong to force that expenditure upon them when neither cares about it in the first place.

Sell it to the buyer that wants one.

And if you're gonna force something upon the FHA, force them to require that their Fee Inspectors be registered with the state as code inspectors. That makes sense. Requiring a Home Inspector license to do a code inspection doesn't.

Marc

[hausdok]

Doesn't matter,

They are not government employees and they are being paid for their expertise as home inspectors.

People should be qualified to do inspections, whether they are FHA or non-FHA. If a private for-hire inspector is out there plying his trade and citizens are relying on him for his expertise and are paying for that, then he should be required to prove that he knows what he's talking about. That's what licensing is supposed to accomplish. It's not about revenue earned from the piddling license fees, it's about assuring consumer protection.

Citizens purchasing anything under the FHA are entitled to just as much protection whether it is a full FHA inspection like a 203K or it's a confirmation that the home meets code. By the way, how is it that a private inspector can certify something that is not to code if it's illegal for a private inspector to do code inspections if he's not a city employee?

ONE TEAM - ONE FIGHT!!!

Mike

[Nolan Kienitz]

I pursued Texas TREC Legal very hard about having them exercise their span of authority over FHA Fee Inspectors and 203k Consultants (there are NOT one and the same).

TREC Legal and I went back/forth for over three weeks on this matter and they ultimately told me that they didn't have any desire to have any span of authority over FHA Fee Inspectors and 203k Consultants.

The basically washed their hands of this situation in Texas.

Now today the TREC Advisor (a monthly TREC newsletter) was released and it lists all the fines against zoids, inspectors and appraisers.

One inspector was fined for not having an active/current license since 2006. TREC cited two specific inspections/reports and I'm sure there have been many more in the time since his license expired in 2006. His fee is $10K and of course does not have an active license. Of course trying to collect the $10K will likely be a whole 'nother trick to deal with.

[Marc]

Doesn't matter,

They are not government employees and they are being paid for their expertise as home inspectors.

They are not deemed qualified by the FHA just because they're home inspectors. The FHA looks at their entire construction background before deciding if they qualify.

People should be qualified to do inspections, whether they are FHA or non-FHA.

That's for the FHA to say since they are the ones being asked to lend the money. If the buyer wants a home inspection, he can hire an HI. Just don't force him to. That's what our Board is doing.

If a private for-hire inspector is out there plying his trade and citizens are relying on him for his expertise and are paying for that, then he should be required to prove that he knows what he's talking about.

Of course, if he's plying home inspections. But in the case of Fee Inspections for properties under consideration by the FHA, its not citizens that are relying on him, its the FHA that's relying on him to confirm code compliance to protect the FHA's investment in the property until the buyer can pay it off.

That's what licensing is supposed to accomplish. It's not about revenue earned from the piddling license fees, it's about assuring consumer protection.

Restaurants don't force you to eat at their place, do they? Mechanics don't force you to pay them to conduct regular maintenance on your vehicles, yet HI Boards should force a home inspection upon a buyer?

Citizens purchasing anything under the FHA are entitled to just as much protection whether it is a full FHA inspection like a 203K or it's a confirmation that the home meets code. By the way, how is it that a private inspector can certify something that is not to code if it's illegal for a private inspector to do code inspections if he's not a city employee?

State registered code inspectors in private practice (3rd party code inspectors) can certify that something is or isn't in compliance. The town I live in has a contract with one to provide compliance inspections to the town. It's cheaper than putting one on the payroll.

ONE TEAM - ONE FIGHT!!!

Mike

I've had hopes for quite a while now to pass a couple ICC exams and begin code inspections in private practice. There's a market for it here.

Marc

[Scottpat]

IMVHO, I feel that FHA fee inspectors and FHA 203k Consultants should hold a valid home inspectors license if their state has a home inspector license program.

The 203k Consultants are performing a home inspection during their initial evaluation of the property. No way around this, it is a home inspection even if the name has been changed to call it something else. I feel the same for the guys who are doing "Code" inspection and not home inspections!

If it quacks like a duck, it is a duck!

It really ticks me off when folks try to skirt the license laws simply because they do not want comply or can't pass the requirements and make-up every excuse to not comply.

Full disclosure.... I'm an FHA fee paid inspector and a 203k Consultant and have been so for many years. I'm also licensed in the states I work in!

[Tom Raymond]

... it's about assuring consumer protection.

Funny, having read the drivel spewed by these two agencies I can say without hesitation that consumers need to be protected from them. Maybe licensing the field guys will raise the bar for the HOCs, but I won't be holding my breath.

[DLRambo]

We've had an issue like this come up in Kansas. As a licensed contractor, FHA Fee Inspector and FHA 203k Consultant I find it extremely embarrassing to hear so many well intentioned BUT basically uninformed inspectors trying to tell others that something like a HUD 92051 compliance fee inspection is a home inspection. Absolutely dumb.

NOT even close to the same thing NOR done to the same guidelines.

[Marc]

The Board's contention is not that a HUD 92051 is a home inspection but that by involving 'two or more systems', it meets the definition of an HI. They're using that as an excuse to require Fee Inspectors to have an HI license although code inspectors and several other professions also cover multiple systems and they are all exempted by the current LA Board membership. Go figure.

Marc

[DLRambo]

Same BS in KS ........ We do NOT have state licensed contractors, builders, remodelers, interior decorators, etc, etc, etc

The HI board with 2 ASHI members are ONLY trying to enforce it on FHA inspectors.

[Scottpat]

FYI, HUD now requires fee paid and 203k inspectors/consultants to have a home inspectors license if their state licenses home inspectors. Actually they are kind of holding off a little with the 203k consultants, if you have a license they want you to send in to them.

[Marc]

FYI, HUD now requires fee paid and 203k inspectors/consultants to have a home inspectors license if their state licenses home inspectors. Actually they are kind of holding off a little with the 203k consultants, if you have a license they want you to send in to them.

Would you remember which mortgagee letter that was?

Marc

[Scottpat]

FYI, HUD now requires fee paid and 203k inspectors/consultants to have a home inspectors license if their state licenses home inspectors. Actually they are kind of holding off a little with the 203k consultants, if you have a license they want you to send in to them.

Would you remember which mortgagee letter that was?

Marc

The letter about the 203k requirement from HUD was sent after so many 203k consultants complained they would not have time to get a HI license. They have basically put it on hold for now, but if you are in a licensed state they want a copy of your HI license. The attached letter was sent to all 203k consultants.

The requirement for the fee paid is on the application, it is not on a letter. Ken Walker who is over the fee paid inspectors for HUD could tell you the date it was enacted. His direct number at HUD is 202-402-2073.

It will not be on any mortgagee letter..... It has nothing to do with the loan but the qualifications of the person acting as a consultant or inspector.

Download Attachment: 203kconsultantletter.pdf

80.69?KB

[Nolan Kienitz]

I've received both letters regarding the HUD 203k Consultant issue, but I've not had any communication from FHA noting any changes.

Save for my original application many years ago I've not had any communication from FHA regarding the FHA Fee Inspection work since.

[randynavarro]

Although there is only one HUD, there are four regional Home Ownership Centers (H.O.C.'s) that actually enforce FHA/HUD guidelines in the states within their jurisdiction.

Of course, they're all supposed to be following the same guidelines, but it's disturbing the differences between one H.O.C. and another.

The Consultant/Home inspection licensing letter is certainly a national letter; however if you speak to a representative in the Atlanta H.O.C., you might get a different response or interpretation from the Santa Ana H.O.C.

Again I say. . . they want to run health care?!