of Mortgage Bankers Association (MBA) on Tuesdays. U.S. Department of Housing and Urban Development The Department of Housing and Urban Development (HUD) is urging the agency not to reprimand mortgage servicers for non-compliance with the new National Standard for Real Estate Inspection (NSPIRE) system until the system is “fully accessible and usable by each participant.”
The letter was addressed to HUD’s Acting Deputy Secretary Ryan LaFollette of the Real Estate Assessment Center (REAC).MBA CEO Bob Broekszmitt explained that until the new NSPIRE system is fully accessible and usable for all users, service providers should not be held liable for non-compliance related to the standard.
“Service provider Federal Housing Administration “FHA loans are required to undergo inspections in a timely manner, and any deficiencies are corrected in accordance with Real Estate Appraisal Center protocols,” Broekszmitt said in the letter, “However, these activities are hindered by accessibility issues and system bugs that have yet to be ironed out in the new NSPIRE system.”
NSPIRE was introduced by REAC in October 2023, but Broeksmit said the MBA has received reports from service providers describing challenges they have encountered when attempting to use NSPIRE.
“[S]Service personnel are having difficulty logging into the system, scheduling inspections, maintaining inspection schedules and reviewing reports.” He explained“Software issues and inaccurate data have left many servicers unable to access the system. For inspections that have been completed, many servicers are unable to access reports and are unable to track any repairs that are required.”
According to the letter, service providers have expressed concern that MBAs will be held liable for non-compliance despite being prevented from accessing NSPIRE.
“MBA requests that HUD provide written assurances to the FHA loan servicing community that it will not be held liable for NSPIRE requirements until the system is fully operational and accessible to each participant,” the letter states. “While servicers are doing their best to work with the new system, NSPIRE issues must be resolved before servicers can comply with its requirements. We request that you make this clear through a formal notice or memorandum.”
be A brief history The protocol compiled by Inspection GroupREAC, which provides inspection services to public housing agencies and affordable housing managers, was established in the late 1990s and was the first standardized process for inspection of federally subsidized properties.
The early 2000s saw the emergence of clearer guidelines and training programs for property inspectors, and over the next decade, additional technology began to be routinely adopted to help inspectors complete their tasks.
In 2020, REAC launched NSPIRE as a pilot program designed to address known challenges in the inspection process. The final rule was published In May 2023, regulations will go into effect requiring inspectors to use the NSPIRE protocol.