Certified Inspector Not Recognized by Lender??

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Originally Posted By: rbracklow
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Ladies and Gentlemen;


I was flabbergasted today by not being recognized as a Certified Inspector to provide a Home Inspection by the Lender of the Buyer for two reasons, never mind the fact that I am a Registered PE! 1) That I am not a Construction Contractor 2) As a result of that, they are concerned in the event of Errors & Omissions that they could not recover damages. This is the first time in over 15 years of inspections that I have ever run across this. I told the Lender that I wish was really true, and that way I would not have to pay $4,000 plus for E&O & Liability Insurance.

It appears that this lender, is not aware, or does not believe, in Home Inspectors!

I sent him a copy of California's Business and Professions Code, Section 7195-7199 outlining the duties and responsibilities of a California Home Inspector.

Right now I am so pissed off, that in all reality I cannot think straight enough for a come back. Per perhaps some of you could give me a helping hand, and/or suggestions and advice. One hell of a Christmas Present.

Actually, if I think about it, perhaps there is more than meets the eye here, and it would be best to walk away from this?? 

Ron.

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Originally Posted By: jpeck
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Ron,


When someone starts asking about E&O insurance, I tell him we are busy and tell him he needs to find another inspector.

When is the last time you went to a doctor and asked if he had E&O (malpractice) insurance? What do you think the doctor would have done?

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Jerry Peck
South Florida

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Originally Posted By: rbracklow
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Jerry,


I full and well understand what you are saying, and of course you are absolutely correct. However, in this case it was not the Buyer, it was the Lender. Isn't he meddling in things that don't concern them?? Well it boils down to the "Golden Rule", he who has the gold, makes the rules!!

I know the old saying "Caveat Emptor" - Buyer beware, in this case it should be "Inspector Beware"!

Oh well, thanks for your reply, I'm just venting.

Ron.

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Originally Posted By: psabados
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Ron


Seems very suspicous that the Lender is taking charge of qualifying the inspector. They're assuming damages already. Now what do they think they know about that property? Better to away from that one.

Paul

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Originally Posted By: rbracklow
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Paul,


After thinking about it, you are absolutely correct, and that's exactly what I'm going to do, stay away from it!! Isn't rather odd though, that a Lender is doing this??

Thanks,

Ron.

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Originally Posted By: jfarsetta
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Ron,


I've never heard of this... especially since you are a PE in the earthquake capitol of the world!

Forget about Caveat Emptor, and remember Illegitemus Non Carborundum

Run, do not walk, run away....... for now

First of all, they should have embraced you for being a PE, as your inspection can legally tread into areas where the home inspection process ends. Second, you are most probably obligated, by law, to carry E&O as a PE. Third, wou have the proven experience as a HI to perform a quality inspection (many PEs want no part of home inspections).

They are steering the consumer in this case, for some reason.

I would gingerly inquire into who developed this policy at this lending institution. The mortgage loan officer or underwriter may have a sweetheart deal floating with someone. Then, I would inquire as to what qualifications they DO require. I would then write to the state banking department to see if what they did was legal. If not, I'd send them a Christmas present of my own...

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Joe Farsetta

Illigitimi Non Carborundum
"Dont let the bastards grind you down..."

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Originally Posted By: rbracklow
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Hi Joe and Happy Holidays.


Well, as always you make good sense!

It is not the Mortgage Broker that is causing the problem, it is the Lender!!

This House was built in 1916, not old for the east coast, but quite old for the left coast , The average home here is between 15 to 20 years old. However, the structure is Redwood, which as you all know is impervious to subterranean activity, since the little Munchkins don't like the acid in redwood. Most lenders though, haven't a clue as to structure material suitability to dry rot, Munchkins, and just general soundness. I am originally from Upstate NY, and I understand why the homes back east are so long lived - it is basically very sound construction. Much better than these tinder boxes out here, as the last So. Calif. fires indicated. Every time something major like that happens here in shaky land, the entire UBC is re-written. This particular piece of property is built on the soundness of east coast construction and is very sound and will most likely outlive any of the new composite material structures. It is nice to have true 4X4's, 2X6's in walls, etc. however these a.. hole lenders, most of them being bean counters, haven't a clue what sound construction is, or will ever have, or care!!

The lender sent out an additional appraiser, I'm not saying that he didn't know what he was doing, but if he is/was a youngster, he may not have the proper insight.  Oh well, such is life.

Perhaps as Paul has stated, leave well enough alone. I sure want to get some blood here though?? What do you think???

Happy Holidays, with a Hum Bug on the side. 

Ron.

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Originally Posted By: jmyers
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Ron,


If they are stating that you are not a qualified inspector, or certified if you prefer, you do have the right to ask they for a list of inspectors that are qualified and what exactly those qualifications are.

It sounds more like the realtor knew the lender and inspector and just did not want you to preform the inspection. There is nothing more demeaning than being jerked around by a bunch of jerks! 

Joe Myers

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Originally Posted By: jfarsetta
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Ron,


I'm sorry... I was referring to the actual lender. Maybe its the underwriter who got the orphan annies. As a businessman and a licensed professional, in a registered, insured, and existing business, you have an absolute RIGHT to know why you weren't good enough, in someones eyes, to inspect that home and render an opinion. If there was a structural collapse, you'd bet your a$$ they'd want a PE! So why not before the fact.

Again, the outrage to me, and the obvious red flag, is the fact that as a PE, you were turned away. I might even understand why they would turn away a HI for a PE, but to not recognize your credentials blows me away.

Dude, go for the jugular. Start with who made the decision at the lender. Ask what they written position is, and what qualifications are needed. Appraisers are NOT inspectors. The buyer is getting screwed if the lender is not recognizing the HIs role as something different than the appraiser.

I'd send the lender a registered letter informing them that you notified the buyer of their decision, and in doing so, the lender may have to bear some responsibility if defects undiscovered by their appraiser are not found. Appraisers do not perform home inspections. They are there to assess value, and that is all.

I'd then request the list of qualified inspectors they recognize, if they had them. I'd then wait for a respnse and follow up with the state banking department... just for starters.

Go ahead... stick your finger in the fan. Have fun 

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Joe Farsetta

Illigitimi Non Carborundum
"Dont let the bastards grind you down..."

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Originally Posted By: rbracklow
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Hi again Joe,


Yeah, you talked me into it - the things you mentioned are good items, I would have never thought about the State Banking Dept. though - very good point.

As far as their inspector/appraiser is concerned, that is second hand info. from Cal. Mortgage, the Mortgage Broker, because they are pissed at the Lender also, and have put them to extenuating circumstances, for the property should have been closed 2 weeks ago, but I think the Lender is scared of the property and I think they did the right thing to cover their a$$. When I spoke to the Lender today, and explained that my credentials actually superceded and and all certifications, he was not interested and flatly stated that only a licensed Construction Contractor could/should inspect the property, and that they assumed - a$$/u/me - that I was a contractor and not a HI. The PE portion was totally ruled out. Their minds were made up, and now the Buyer has to race around and find a Contractor to inspect the House.

The Buyer mentioned to me, that he would like a refund, and I told him flat out no, since I have put more time in this inspection helping him than warrants, approx. 8 - 10 hours total, and that it is not my fault that my inspection report is not appropriate to the lender. I told him that I would refund the $400.00 I charged for the inspection and bill him for 6 hours at $100.00/hr. He shut his mouth! I really hate to see the Buyer go through this, for he is a good guy, and wants to be in the house by the 1st. after having to do allot of rework and repairs in the house. I wish him luck.

Joe, as you say, and I feel, it ain't over till the fat lady sings! I hear that she has a sore throat!! 

Thanks for your help, and all others. It makes my Christmas a little brighter to know that we have people to go to out here and vent a bit. I also appreciate your advice and encouragement.

Merry Christmas,

Ron.

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Originally Posted By: jfarsetta
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Ron,


Suggest to the lender that they get bent... ahem... I mean that a Contractor is not necessarily qualified to perform the inspection. The contractor should provide an estimate for repairs, after the home has been inspected and defects noted. I can almost guarantee that the contractor's insurance doesn't cover errors and omissions, which is what he has just signed himself up for.

They'd have been better off hiring a 203K-type consultant, who has an inspection AND estimating background. If they asked for THAT qualification (even though this is not 203K territory), it might have made sense.

I'll bet he (the contractor) is limited to traditional completed operations and general liability coverage, and the responsibilities associated with providing an inspection of this type havent dawned on him. The lender has, in turn, left the client with no means of indemnification should they be damaged by this "inspection". I think the letter to the lender, with a copy to your client, should shake the trees over there. Let your client follow up with a letter stating that, since your inspection was basically thrown out by them, that he hopes THEY carry the proper insurance, in the event they are damaged as a resut of a bad inspection!

Turn the tables on the bank... I like it! 

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Joe Farsetta

Illigitimi Non Carborundum
"Dont let the bastards grind you down..."

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Originally Posted By: rbracklow
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You’re a great guy Joe!! Thanks for your help!!


I'll definitely take your advice, and do as you suggest.

Ah, pay back is sweet revenge!!    

Ron.

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Originally Posted By: ekartal
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Perhaps the lender had a “special” inspector in mind.



Erol Kartal

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Originally Posted By: rbracklow
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You think??


Merry Christmas

Ron

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Originally Posted By: kpapp
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You go get em Ron Most prior military people know to use the chain of command, but to get what you want right away go to the top. I would send that well thought out letter to the head boss and let the $hit roll down hill and see what gets cleaned up in the end . Good luck

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If you dont have time to do it right the first time, When will you have the time to go back and fix it?

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Originally Posted By: rbracklow
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Hi Kenneth,


"Yes truly, let us never forget them" as an ex-Fighter Jock over Nam, I lost many a buddy to Hanoi Hilton!! Where, when and what unit were you in??

Thanks for the encouragement. I sat down last night and this morning drafting a letter - and it's going to hit the proverbial fan!!

"And the Beat Goes On"!! 

It is truly amazing what we do to keep us busy during the slow periods.  

Merry Christmas to all!

Ron.

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Originally Posted By: Blaine Wiley
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Ron,


I am curious. Are you at liberty to state the name of the lender here. We should all know so we can look out for the same treatment if they are a national lender. There may be others who have had the same thing happen to them and could chime in.

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Originally Posted By: rbracklow
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Absolutely I’ll disclose the Lenders name. It is; “World Savings”


Nice Company, eh??


Ron.

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Originally Posted By: Blaine Wiley
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Sounds more like an environmental whacko group than a lender. We don’t have them around here, I don’t think.


Sick 'em, Fido!!!

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Originally Posted By: kpapp
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Merry Christmas Ron,


I am too young to of been over there, but my uncle was a helo pilot working with special ops from what I hear. He is still there thus the pow flag

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If you dont have time to do it right the first time, When will you have the time to go back and fix it?