TOPIC: Mortgage companies require report viewing

I'm in California. I'm starting to se mortgage companies call out that repairs be made based on my reports before funding the loan. These are not FHA loans. They are standard loans. Anyone else encountering this?

The report is for the clients eyes only! I feel this is causing us more undue/ unknown/ unwanted liability. Seems like the appraisers report is what they need, not our inspection report. Also, if they are to be using our report, it seems we should be paid by them. One colleague is advising his clients to tell the bank they've waived the inspection so they won't need to jump through the hoops.

I have a reinspect scheduled to check off the repairs of one property.

What have you guys seen or experienced?

What are your thoughts?

Golden Rule.  He who has the Gold, makes the rules. 

The mortgage companies make all kinds of demands.  If you want their money, you have to meet their demands.  Or find a different company to loan the money. 

Mort companies dont have anyone on staff to make sensible decisions about what should or shouldnt be repaired from reading a HI report.  Sharing the report with a mort co is only going to muck up the works.

I have had clients ask about sending the report to the mort co.  I have recommended to them to NOT send the report unless absolutely necessary and only after denying the existence multiple times. 

I always advise my clients to NOT share the report with the mortgage company.  Those that do always seem to get an underwriter from across the US that doesn't understand the local common findings.  These office workers have screwed up more deals than they have ever held together. 

Agreed. Thanks for the input. Mainly wondering if anyone else is seeing an increase in this.

It's been my experience that the lender is involved because the house that is for sale has been flipped. I don't know all the reasoning behind it, but if there are any issues it is normal for me to do a re-inspection on the property. I don't do a lot of them just the ones that investors are flipping.

Danny,

Just a quick comment on your statement...

The report is for the clients eyes only!

IMO, that is an incorrect statement. The report is for "use" by my client only.

HUGE difference!

My client paid for the report, and they have full license to "use it" any way they see fit, as long as they don't violate my copywrite protection.

As stated in my PIA and Report wrote: This Report has been prepared for the sole use of the CLIENT named in the Inspection Agreement.

This Report is protected by U.S. copyright laws and information is not transferable to third parties by any person or entity, including Real Estate Brokers and Agents, Realtors or Attorneys, without written permission from CRITICAL EYE PROPERTY INSPECTIONS and the CLIENT named in the Inspection Agreement.

CRITICAL EYE PROPERTY INSPECTIONS will not release any information to anyone who is not a party to the Inspection Agreement which has been contracted prior to the inspection.

Duplication by any means is prohibited without prior written permission and authorization from CRITICAL EYE PROPERTY INSPECTIONS and the CLIENT named in the Inspection Agreement.

Transfer to any other potential buyer or another agent is prohibited. If the client named in the Inspection Agreement fails to purchase the property, any person(s) not included in the Inspection Agreement may be prohibited from using information included in this report for any reason.