Thread: Mortgage Co wants to send unlicensed Inspector for insurance progress ? Illegal ?

Our mortgage company, PNC, keeps sending out unlicensed home inspectors for our claim in Maryland.
We lost our kitchen to a flood. Our insurance provider, USAA, sent us the check to pay for repairs and we deposited with Mortgage holder, which is PNC.
We have received milestone payments for progress made.
Kitchen is 90% done and PNC had someone call us who told us she was a home inspector.
DH made an appointment for her to come out this week.
Looking her up on MD Govt. board for licensing turns up nothing.
And can not find a thing about her online except her social media.
Not a thing to show she has any work experience even.
So I am trying to ascertain is the inspector a mortgage company sends how to inspect if work has been completed on a house needs the same licensing as a home inspector for buying property.
Any good opinions here?

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You would need to carefully review any "home inspector/inspection" legislation - but my guess is that inspection does not fall within the definition of a "home inspection" as defined in statute.

Originally Posted by Jerry Peck

You would need to carefully review any "home inspector/inspection" legislation - but my guess is that inspection does not fall within the definition of a "home inspection" as defined in statute.

Interesting. I just don't understand how the mortgage company's independent home inspector is a different animal than the garden variety kind.

Could it be the insurance company is sending out someone just to verify damages? An adjuster possibly? This does not sound like within the scope of a standard home inspection.

Originally Posted by Jack Feldmann

Could it be the insurance company is sending out someone just to verify damages? An adjuster possibly? This does not sound like within the scope of a standard home inspection.

We had the adjuster from insurance company out long ago.
The mortgage company has been doling out proceeds from the insurance check based on progress inspections.
The last person they sent out called himself a home inspector.
The woman they want to send out this week was also referred to as an inspector.

Confusedgirl,
The person that the note holder (PNC) is sending out does not have to be a licensed Home Inspector. The inspector can be anyone they (PNC) choose either in house or subcontracted out to. They come to verify (sign off on) the progress completed to then release payment from funds PNC are holding. The bank (lender) wants to be sure that the money designated to restore the value of the home is being used on the home and not a trip to Italy.

Granted the bank could use better terminology for their representative (agent) since Maryland has a criteria for someone being a "Licensed Home Inspector". Though the creation of the license was directly linked to the purchase and sale of a home in the body of the regulatory law. In your case you have someone coming to "inspect your home "and therefore a "home inspection". The difference is in context of "home inspector" and "Home Inspector". One being a description and the later being a legal licensed title. The adjuster works for the insurance company to settle a claim. The inspector of work on the home/home inspector is for the benefit of the lender to protect their exposure on the note.

As a side note;
The title of Licensed Home Inspector is misconstrued by many. The title does not mean that the person possesses the professional experience and knowledge of the building trades that they are inspecting. Also, do not be mislead that adding Certified or Professional to the title indicated that the person is of any higher stature in the home inspection field. "Certified" and "Professional" are only marketing terms used for sales purposes.

With a licensed Home Inspector you have Liability Insurance, but not required to carry Errors and Omission Insurance as required in Pennsylvania as an example.

In Maryland home improvement contractors, basically anyone working on your house, must be licensed. Yet to be Licensed does not mean that they are competent, experienced, knowledgeable and have the ability of what they purport. With a licensed MHIC remolding contractor you get Liability Insurance and a performance Grantee Fund.

Liability is for damage done to the property.
Error and Omission is for what was missed.

Gary said it very well. These are "progress" or "draw" inspections, or surveys, more than anything else. The lien holder has a vested interest in the property, and until you see the form or line items on the work orders issued to the field inspectors, we're all just guessing as to what is being "inspected".

Curious, is there a problem with your claim? Are you upset or worried something is wrong? You can always hire your own private inspector to review the work or repairs, then you can have the piece of mind you're looking for.

Originally Posted by Garry Sorrells

Confusedgirl,
The person that the note holder (PNC) is sending out does not have to be a licensed Home Inspector. The inspector can be anyone they (PNC) choose either in house or subcontracted out to. They come to verify (sign off on) the progress completed to then release payment from funds PNC are holding. The bank (lender) wants to be sure that the money designated to restore the value of the home is being used on the home and not a trip to Italy.

Granted the bank could use better terminology for their representative (agent) since Maryland has a criteria for someone being a "Licensed Home Inspector". Though the creation of the license was directly linked to the purchase and sale of a home in the body of the regulatory law. In your case you have someone coming to "inspect your home "and therefore a "home inspection". The difference is in context of "home inspector" and "Home Inspector". One being a description and the later being a legal licensed title. The adjuster works for the insurance company to settle a claim. The inspector of work on the home/home inspector is for the benefit of the lender to protect their exposure on the note.

As a side note;
The title of Licensed Home Inspector is misconstrued by many. The title does not mean that the person possesses the professional experience and knowledge of the building trades that they are inspecting. Also, do not be mislead that adding Certified or Professional to the title indicated that the person is of any higher stature in the home inspection field. "Certified" and "Professional" are only marketing terms used for sales purposes.

With a licensed Home Inspector you have Liability Insurance, but not required to carry Errors and Omission Insurance as required in Pennsylvania as an example.

In Maryland home improvement contractors, basically anyone working on your house, must be licensed. Yet to be Licensed does not mean that they are competent, experienced, knowledgeable and have the ability of what they purport. With a licensed MHIC remolding contractor you get Liability Insurance and a performance Grantee Fund.

Liability is for damage done to the property.
Error and Omission is for what was missed.

Garry, thank you so much. PNC reiterated that the person who will visit our house is a 3rd party "Home Inspector". I think they need to use different terminology.
Your response explains so much. Glad that there are people like you and others on this forum who have standards and insight.

For myself and others thank you for your complement.

You were wright to be inquisitive as who is involved in all phases of your project. Do not hesitate to question your lender as to whom is coming or involved at any time and what there credentials are in relation to what they are doing. Most people don't inquire and are totally uninformed. Then they wake up and find out they are up the proverbial creek.

Best of luck with the outcome.

confusedgirl

questions you may want to ask PNC
how are their "inspectors" vetted
do they require background checks & sex offender verification
not trying to be a fear monger, just a realist
there are those that use their "day job" to case property/occupants for future nefarious activities
Foreclosure Industry Says It'll Do A Better Job Of Screening Its Workers After Widespread Break-Ins | The Huffington Post

Most Common Schemes - Identity Crimes - Center for Identity Management and Information Protection (CIMIP) - Utica College

Sex offender used fake name to gain access to kids' feet - WALB.com, South Georgia News, Weather, Sports

The state statues as previously mentioned will prevail. As an example in NC once you inspect 3 or more systems you must be licensed. So if they are inspecting a kitchen and this includes electric, plumbing and other they may need to be licensed in NC.

Originally Posted by Jeff Zehnder

The state statues as previously mentioned will prevail. As an example in NC once you inspect 3 or more systems you must be licensed. So if they are inspecting a kitchen and this includes electric, plumbing and other they may need to be licensed in NC.

Ah ... but they are not inspecting "systems".

Are you saying that if someone goes in and looks at a kitchen sink, a receptacle, and a window that they have to be a licensed "home inspector"?

Originally Posted by Jerry Peck

Ah ... but they are not inspecting "systems".................

It will vary by state or jurisdiction.

In MD a "Home Inspection" is a specific thing with an SOP to follow and technically you are required to go through the entire SOP. Meaning you must make a reference to each system in the SOP even though it may only be a "Did Not Inspect " with the reason stated, a reason must be stated. To perform a progress inspection there are no requirements of who does the inspection. Who ever the client wants. They could send Randy from accounting to do the inspection. Or use someone like Muller.

Originally Posted by Garry Sorrells

It will vary by state or jurisdiction.

In MD a "Home Inspection" is a specific thing with an SOP to follow and technically you are required to go through the entire SOP. Meaning you must make a reference to each system in the SOP even though it may only be a "Did Not Inspect " with the reason stated, a reason must be stated. To perform a progress inspection there are no requirements of who does the inspection. Who ever the client wants. They could send Randy from accounting to do the inspection. Or use someone like Muller.

IF one is a "Home Inspector" / "licensed home inspector" - from the Maryland requirements: License Requirements - Maryland Commission of Real Estate Appraisers, Appraisal Management Companies and Home Inspectors - Division of Occupational and Professional Licensing

"Home Inspector: A home inspector is an individual who provides home inspection services for compensation. A licensed home inspector means an individual who is licensed by the Commission to provide home inspection services. Home inspection means a written evaluation of one or more of the components of an existing residential building, including the heating system, cooling system, plumbing system, electrical system, structural components, foundation, roof, masonry structure, exterior and interior components, or any other related residential housing component (see the Minimum Standards of Practice and Code of Ethics)."

Note that Maryland also states "system" when referencing what is included.

If one wanted to argue the finer points of the wording, then anyone who provides any information about any "component" of any "system" for "compensation" would be required to be a licensed home inspector, and, keep in mind that "compensation" has a wide meaning as used in various places - I did a Google search and did not find a definition for "compensation" in any of the Maryland laws I looked at (probably, the right search term wording may provide such definition, but I could not hit the right search term wording).

Part of the problem is that what is stated as an explanation of "Home Inspector: A home inspector is an individual who provides home inspection services for compensation....." does not appear in the body of the written law. Then again it does allow for wiggle room if there is a complaint made.

I and others took the position that since the law does not specify that a "Home Inspection" is something less that the entirety of the minimal required systems. Which make the work around "Did not inspect, client waived inspection of system." for each system of report not inspected. It may seem stupid to do it that way, but it covers the HI for future potential issues. Falling back to the requirement of an inspection to meet the minimal requirements set out by law.

Granted not a universal interpenetration or implementation by those in MD, though it does offer some protection in a back handed method.

Maryland allows for trades that are licensed to inspect and report on their particular area and not be required to be a licensed HI. The turning point I think is that in the Real Estate Transaction and Contracts with contingency clauses specifying (boiler plate) Home Inspection there was a desire by the realtors that they would have some control over who was filling the classification of HI. Also, I believe there was a movement by HI associations to control their industry and outside competition. Just an opinion.

Still think that it is the difference between "home inspector" and "Home Inspector". Regarding the OP the bank could have said they were sending a compliance inspector, a progress inspector or something else. To most in banking it is just nit picking over terminology.

Originally Posted by Garry Sorrells

To most in banking it is just nit picking over terminology.

I suspect that this entire thread is about "nit picking over terminology".

And statutes are good about that because many (most?) are intentionally vague by the legislators to not limit themselves while also giving themselves wiggle room for meanings.

As has been previously stated these requirements variy by state
But in NC I misspoke

"Home inspection.
A written evaluation of two or more of the following components of a residential building: heating system, cooling system, plumbing system, electrical system, structural components, foundation, roof, masonry structure, exterior and interior components, or any other related residential housing component."


Must have state license!

Originally Posted by confusedgirl

Our mortgage company, PNC, keeps sending out unlicensed home inspectors for our claim in Maryland.
We lost our kitchen to a flood. .........................

The OP may be thinking that the bank is sending someone to accept responsibility for the work being completed. That the banks inspector is performing a quality and structural inspection of the contractors work, though they could but I do not believe they are in this case. Probably why the concern over the "unlicensed" status that was found.

If the homeowner is unhappy with the work or is concerned about quality or code they need to bring in someone in at their expense and resolve those concerns. Not uncommon.

A little simplistic insight into Maryland that may carry over to others.

The insurance pays for the damage repair (loss) per policy.
The bank requires that the repairs be made by Licensed Contractors (MHIC) since the bank has a recorded interest in the property.
The home owner selects the contractors to perform the work.
The bank looks to the contractor to be liable for their work.
The bank makes progress payments as the repairs are completed after verifying that the repair has been completed in a workman like manor. Bank relies on the bank's personnel to make that determination.

The bank is concerned to returning the property to the condition it was prior to the loss and therefore restore the value of their security.

I wasn't at home, but DH met with Mortgage company rep to inspect things.
I told him to notice whether or not she called herself any title.
He says that after she knocked on the door and he opened it, that she said she was the home inspector for the mortgage company. Yup, guess she is walking around thinking she is a home inspector.
Anyway, DH said she was in the house for less than 4-5 minutes, marked everything as 95% completed and quickly left.
Mortgage company verified her name and that they randomly picked her from from a list of approved "home inspectors".
He asked the person at the mortgage company to clarify that the rep was a home inspector who was licensed. Mortgage rep quickly backpedaled and stated that the person who came out to our house was a person selected to inspect progress , not a home inspector.
Oddly enough, mortgage company still doesn't have report back from the faux home inspector yet...
Wonder how long that should take....

I am so glad I discovered this site. Thanks again for all helpful answers.

- - - Updated - - -

I wasn't at home, but DH met with Mortgage company rep to inspect things.
I told him to notice whether or not she called herself any title.
He says that after she knocked on the door and he opened it, that she said she was the home inspector for the mortgage company. Yup, guess she is walking around thinking she is a home inspector.
Anyway, DH said she was in the house for less than 4-5 minutes, marked everything as 95% completed and quickly left.
Mortgage company verified her name and that they randomly picked her from from a list of approved "home inspectors".
He asked the person at the mortgage company to clarify that the rep was a home inspector who was licensed. Mortgage rep quickly backpedaled and stated that the person who came out to our house was a person selected to inspect progress , not a home inspector.
Oddly enough, mortgage company still doesn't have report back from the faux home inspector yet...
Wonder how long that should take....

I am so glad I discovered this site. Thanks again for all helpful answers.

" she was the home inspector for the mortgage company. Yup, guess she is walking around thinking she is a home inspector."

I think she is walking around thinking she is what she said she was " she was the home inspector for the mortgage company" ... which should not be confused with "Licensed Home Inspector", much like a "Dr. Jones, PHD" should not be confused with "Dr. Smith, MD".

She is, from her point of view, 'inspecting homes for the mortgage company', and that is who she said she was.

Just saying, it sounds like you are trying to split hairs between what she says she is and what you think that means.

Is she 'inspecting homes' for the mortgage company? You indicate that is what she is doing.

Home Inspector vs home inspector vs inspector of the home vs I come ta see what got done ta you.

Interesting thread.

I agree that we are splitting hairs on terminology. Which brings up the larger question to those of us in licensed states. Should we, through our professional associations, seek to limit who may call themselves a Home Inspector?

Does not matter if they say Licensed home inspector, Home inspector for the mortgage company or Home inspector for Santa Claus. It creates confusion in the general public.

I would assume that we have all worked hard and jumped through all the hoops to get licensed and to keep that license. Why should we allow someone without the licensed to use the title??