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MEMO
#5008: 25-35 Inspections Guideline Requirement - (08/18/03)
From:
Leslie Bromer
Subject: Re: Fwd: RE: HUD 25-35 Day Inspection Guidelines
To: robert.klein@safeguardproperties.com
Cc: Richard Dunne
Date: Mon, 18 Aug 2003 12:18:07 -0400
at 08/18/2003 12:25:06
Robert,
What Richard
noted was technically correct, but maybe I can simplify the
matter for you. Unless HUD's guidelines require inspections
more frequently than every thirty days, any case that requires
an inspection (both vacant and occupied), should be scheduled
to be inspected every 30 days. The Department will
consider the mortgagee in compliance if the inspection is
completed not more than 35 days from the last inspection and
not less than 25 days from the last inspection.
You are
correct in that HUD will reimburse only 12 inspections in
a 12 month period where there are no requirements to inspect
more often than every 30 days.
Leslie
Date: Mon, 18 Aug 2003 11:52:35 -0400
To: Richard Dunne, Leslie Bromer
From: Robert Klein <robert.klein@safeguardproperties.com>
Subject: Fwd: RE: HUD 25-35 Day Inspection Guidelines
Cc: hud.review.group@safeguardproperties.com
Richard,
Please
see one of our client's interpretation of the property inspection
requirements under ML 2002-10, specifically the 25-35-day
time frame requirement.
Most
of our clients have instructed us to apply the 25-35-day rule
only for vacant properties. For occupied properties, the rule
is no more than 12 inspections (excluding compliance inspections)
within a 12-month period.
Was
it HUD's intent for the 25-35-day inspection time frame to
apply to all inspections where the servicer was not successful
in establishing contact with the borrower, or just to inspections
of the properties that have been confirmed vacant?
Please note that the below comment in the ML, "Generally,
the property must be re-inspected within 25-35 days"
is only listed relating to occupied properties where the servicer
was not able to establish contact via other means. This is
not included in the paragraph relating to vacant properties.
As
always we appreciate your input and clarification.
Robert
Subject: RE: CMC 1629004277 ORDER 14581425
Date: Tue, 5 Aug 2003 11:00:42 -0400
From: Kathy Cogan
To: "Robert Klein" <robert.klein@safeguardproperties.com>
Robert,
Following
is the HUD guidelines AND my interpretations of the guidelines
on this issue. My comments are in blue and excerpts from the
guidelines are in red.
ML 2002-10
Attachment 2, Page 1
PROPERTY
INSPECTION SERVICE REQUIREMENTS AND COST SCHEDULE
When
a mortgage is in default and a payment is not received within
45 days of the due date, and efforts to reach the mortgagor
by telephone or other means within that period have proven
unsuccessful, the mortgagee shall make a visual inspection
of the property to determine occupancy status.
If the
property is occupied, and the
mortgagor continues to be in default, the mortgagee should
continue to try to make contact with the mortgagor or occupant
each month by telephone or through correspondence. If the
mortgagee is unable to contact the mortgagor or occupant by
any other means, generally, the
property must be re-inspected within 25-35 days of the last
inspection or last documented contact with the mortgagor or
occupant. However, some areas require more frequent inspections
as prescribed below.
If it
can be established by other means that the property is occupied,
an inspection is not necessary and will not be reimbursed.
If an inspection is performed on an occupied property, the
cost will only be reimbursed if the mortgagee can provide
adequate documentation to show that the mortgagor or occupant
could not be reached by any other means. This documentation
must be maintained in the mortgagee's claim review file. The
mortgagee must inspect a vacant or abandoned property every
25-35 days, or more frequently as prescribed below,
to determine whether protection and preservation action is
necessary. At the time of the first inspection following verification
that the property is vacant, the mortgagee must photograph
the exterior and interior of the property. All photographs
must be dated. A maximum of six photographs will be allowed
for reimbursement. The photographs must be maintained in the
mortgagee's claim review file.
Summary:
Vacant properties must be inspected
every 25-35 days.
"The mortgagee must inspect a vacant
or abandoned property every 25-35 days, or more frequently
as prescribed [in the regional variations], to determine whether
protection and preservation action is necessary."
Does the 25-35 day guideline apply to occupied properties?
Yes. Occupied properties must be inspected
every 25-35 days if contact cannot be made through any other
means."
"If the property is occupied, and
the mortgagor continue to be in default, the mortgagee should
continue to try to make contact with the mortgagor or occupant
each month by telephone or though correspondence. If the mortgagee
is unable to contact the mortgagor or occupant by any other
means, generally, the property must be re-inspected within
25-35 days of the last inspection or last documented contact
with the mortgagor or occupant. Note, however, regional variations
may require more frequent inspections.
If it
can be established by other means that the property is occupied,
an inspection is not necessary and will not be reimbursed
unless the mortgagee can provide adequate documentation to
show that the mortgagor or occupant could not be reached by
other means. Such documentation must be maintained in the
claim review file."
How does
the 25-35 day guideline apply to compliance inspections?
This guideline does not apply to compliance
inspections as regional variations supercede the general requirements.
"Generally, the property must be
re-inspected within 25-35 days of the last inspection or last
documented contact with the mortgagor or occupant. Note, however,
regional variations may require more frequent inspections."
For example, in Chicago, IL:
"Properties in the [listed] zip
codes are to be inspected twice per week on a year-round basis."
Thanks,
Kathy Cogan
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