Hud Fee Inspector providing escrow amounts?

I’ve asked this before, but this has come up again…

Had a fee inspection for a “new” lender. She insists that HUD is requiring that they have the escrow amounts included on the 92051 form that I submit. I’m pretty confident that we aren’t supposed to be doing that. She even said that HUD is requiring things from them that aren’t in the guidelines (like this).

She claims that all her other fee inspectors are providing it. I told her that I didn’t know one that was.

You guys (especially in MO) seeing this? What are your thoughts? Am I wrong?

I would kindly ask her to provide you with the HUD Letter (document) that has this request in it. Tell her you would like a copy so that you can make sure that you are not making a mistake.

By “Escrow Amount” what are they looking for? Is it the cost to correct things that you note?

In particular, they are asking for an amount for them to escrow to cover the completion of Seed/Sod in new construction. From what I have gained over the last year from other lenders, this amount runs from 800 - 1500.

My problem is that as an inspector, I don’t have amounts to give them. I’m not a contractor, nor am I an appraiser.

That’s the appraisers function that is done with the final appraisal.

Mark -

This year has been NUTS on this type of crapola. I get agents OR lenders all the time telling me that HUD requires …

Like Scott said … If HUD hasn’t issued a letter requiring it of Fee Inspectors, its someone else in the chain trying to shift liability off them / Onto you.

My stock answer is / “You’re kidding. I’m a HUD Inspector AND I’ve never heard of this OR been told by HUD to do that.” “Send me a copy of HUD’s memo on that / OR the Mortgagee Letter from HUD, SO I do it right”


There is no such thing as a “final appraisal”. The appraisal is what it is, and there is only one.

It used to be that they appraisers would go out and do the “finals”, and they would do the escrow amounts. Now the new rules prohibit that, and require a fee inspector instead.

What the fee inspector does is confirm the completion of the home and/or list things that are not complete. The most common is seed/sod lacking on new construction.

What we are doing is the “final inspection”. The lenders are asking for an amount to put into escrow to cover the seed/sod not being done. Until I’m protected by HUD/FHA on that it’s not happening. I’m told that other inspectors do it. But Dan is the only other one I know of and he doesn’t. So I’m perplexed…

Again my answer is that they are looking for an amount to escrow on their 92300 form in order to proceed with closing. Our form has no location for submission of a cost for completion and no provision for addittional commentary. I would advise them to escrow sufficient funds in response to their enquiry in a return email but don’t put it on that HUD form we use. Tell them the truth you can’t. But responding to their email with an approximation of cost to complete I wouldn’t have a problem with. They have to fill out 92300 form.