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| There are 205 entries in the glossary. |
| Pages: 1 |
| 24 Hour Rush | Any type of inspection that has a turn-around of twenty-four hours. It may be a occupancy inspection, face-to-face interview or any contact or no contact field service. Results must be returned with twenty-four hours of receipt. |
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| Access Denied | Access Denied means the field rep can not gain access to a property for some reason. The field request inspection form will normally have a circle to fill in or a check box to check to indicate there was a problem getting close enough to the property for inspection. Some common access denied situations are: gated community condo with a security force locked gate posted property card access Access Denied does not include weather, road conditions, etc. Access Denied means you are at the property or as close as you can be but are not allowed on the property. |
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| Administrative Fee | Pertaining to the field services business, a system used to gouge others. A method to extort from, swindle, or overcharge. To engage in swindling or overcharging. Example: I did field inspections for them up until they started charging administrative fees. The same as a Charge Back with different terminology |
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| Administrative Penalty | Another term for CHARGE-BACK. A more professional term for another form of CHARGE-BACK. Some companies use their Quality Control Department to charge an Administrative Penalty thereby becoming more of a profit center than a quality control department |
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| Allow Access | A service performed which gives access to a property secured with a HUD master key, or the key code specified by the regulatory specification for the loan type.
Properties not previously secured will require a lock change or the keys to the property will need to be provided. |
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| Alternate Rep | An independent contractor or business that works in the same areas as another field rep. |
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| Backup Rep | The field rep that is secondary to one or more other reps in a particular area. Most companies will have two or more reps in an area and work can be equally or unequally divided among the reps. |
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| Bank Owned | The bank has aquired title (ownership) to the property. The bank is the seller. |
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| Bankruptcy | The legal process in which a person or firm formally declares their inability to pay debts. In Chapter 7 bankruptcy filings, any available assets (with some exceptions) are liquidated and the proceeds are distributed to creditors. Chapter 11 bankruptcy filings are reorganizations of bankrupt businesses. Chapter 13 bankruptcy covers work-outs of debts by employed individuals with some assets. Upon a court declaration of bankruptcy, a person or firm surrenders assets (Chapter 7) or makes pre-arranged payments over three to five years (Chapter 13) to a court-appointed trustee who distributes the funds to the approved debtors. |
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| Bankruptcy Inspections | A drive-by, no contact inspection that provides the current condition of the property, the occupancy status of the property and a narrative if there is any damage or any potential conditions that could affect the value of the property. Contact no-one. Do not contact mortgagor, occupant or neighbors. Do not discuss the mortgage, bankruptcy, etc. with any third party. Bankruptcy inspections are normally performed every 30 days. |
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| Board Broken Only | A service performed whereby only the broken windows at a property will be secured by boarding, regardless of the area regulatory requirements for the loan type. This order also authorizes the field representative to board any broken windows at the property without prior approval. Photographs of the broken windows, and completed boarding, must be provided. |
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| Board or Screen to Area Specification | A type of property preservation work order type that requires that any broken windows found at the property will be boarded or screened according to the area regulatory requirements for the loan type. |
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| Board-Up | Secure a property by using plywood to cover broken windows, doors, and any other unsecured access. Additional preservation procedures may be requested such as locks, tarps, and security personnel if necessary. |
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| Borrower Interview | The purpose of this assignment is to make direct contact with the borrower and obtain the reason for the delinquency, date of last payment, payment proposal and current phone numbers where the borrower can be reached. The property condition and descriptions is included with the report. If the borrower is unavailable at the time of inspection, a call back card is normally left at the property. |
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| BPO | A BPO (broker price opinion) is a brokers opinion of value of the property. Normally must be performed by a licensed real estate agent or broker |
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| Broker Opinion of Value | Valuation of a property. Same as a Broker Price Opinion (BPO) or Comparative Market Analysis (CMA). This inspection determines the physical condition of the property and compares it to similar properties that have recently been sold. The inspection is used to help determine the market value of the property and usually requires access to the Multiple Listing Service in order to see the data on other listings and sales. In order to perform this service, one must be a licensed realtor and the report must be signed by a licensed broker. Pictures are required. |
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| Broker Price Opinion | A broker price opinion is a real estate brokers opinion of value of a property. |
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| Broker Report | Same as Broker Opinion of Value |
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| Business Site Inspection | Validate the existence or operation of a business enterprise. Customer traffic and photographs may be requested. |
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| Business Verification | Business verification is a basic walk-through of the facility to confirm a business is viable.
Business verifications are performed for for dental practices, medical practices, veterinary practices and many other types of business. For each of these businesses, the field rep will need to view rooms and verify the equipment on site is conducive to its type of practice.
A lot of these practices are prefunding inspections which can be new start ups. The field inspector is sent on site to make sure, that the particular site is being set up for a dental practice, a vet practice, a medical practice or the type of business indicated on the request.
These inspections take approximately 10 minutes and require photos such as the outside of building, with signs if available, 1 interior, 1 unoccupied exam room or other as requested. |
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| Call-Back Information | A card, letter or other form of written communication. May be pre-printed and designed to be placed in an envelope and left at the time of the visit, or left hanging on the front door knob. Call back information will usually have the name of the person to call, their phone number and an account number to reference. |
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| CAP | A limit placed on the number of field assignments issued to a field rep at one time or a limit placed on the number of field assignments a field rep receivied but has not completed. |
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| Cash for Keys | The act of offering the occupant of a property cash to move out and hand over keys to the property. The normal procedure will go something like this: Meet occupant and get full name(s)and contact info. If there are multiple occupants as in an apartment building, ask for their information too. Try to meet everyone at once and then have individual meetings later. Talk with the occupants in a non threatening and business manner. Tell the occupants why you are there and offer proof - such as a deed or any other documents you may have - of your right to make the offer. Give them their three options: Buy the property Accept money to vacate the property(Cash for Keys) Be evicted
Advise that option one would be terrific; option two is also good and option three is bad for everybody. The next step and choice is up to the occupant(s). If the Cash for Keys offer is accepted, have occupant(s) sign an agreement and exchange cash for keys when the occupant vacates the property. | |
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| CC | Conveyance Condition |
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| Change in Occupancy | A property that was reported vacant last month but is now reported as occupied. Also, a property that was reported occupied last month but is now reported as vacant. Pictures must be taken and a short narrative must be written which will convince anyone reading the report that the occupancy did indeed change. |
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| Charge Back | A practice used by some companies to severely penalize field personnel. Often described as the cost of having another rep perform inspections that were not completed by the rep to whom the inspection was initally issued. Usually involves greedy monetary penalties such as a $50 charge-back for a $5 inspection or a $60 charge-back for a $5.50 inspection. |
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| Classic Car Inspection | The inspection of an antique or other special automobile. Most often performed by an experienced auto appraiser but can be performed by an antique car hobbist with experience and knowledge of antique vehicle values. This appraisal request is intended to place a value on a automobile or other classic vehicle for the purpose of obtaining a loan or insurance. |
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| Clean-Up | Performing a number of outstanding inspections that have not been performed because there are no inspectors available in the area, an inspector may have resigned, etc. Normally will be hard to locate or rural properties. Usually pays well but requires a lot of travel. |
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| Clearing City Violations | Clearing of violations issued by the city for violations of city codes. Clearing of city violations involves correcting the problem the prompted the violation and contacting the city inspectors to have them re-inspect the property and clear the violations. Notices of violation issued by city inspectors may cite a property with city violations due to the property condition, it’s vacancy, etc. The most common city violations are for grass height or dangerous hazards. Any number of things can force a city or county government to impose a fine against a property owner. |
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| Code Violation | A violation of codes and ordinances normally established by a governing authority such as a city to assist in sustaining a defined quality of life or property appearance. Some common code violations are:
Abandoned or Inoperable Motor Vehicles
Outdoor Storage/Rubbish
Improper or illegal parking
Public Nuisance Ordinance
Smoke/Smoking
Unshoveled Sidewalks
Trash & Yard Maintenence
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| Code Violation Abatement | Services performed on a property to prevent or cure violations cited by a governing authority. |
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| Collateral Inspection | Attempt to contact the borrower to obtain the reason for delinquency, date of last payment, any promise of future payment, condition and location of the collateral. Additionally, the employment information, contact phone numbers and best time to contact the borrower, and co-borrower, are provided. Call back cards will be left at the property if requested, and the borrower is unavailable at the time of inspection. |
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| Commercial Inspection | The visual examination and observation of an income producing property. There are a large variety of commercial inspections and the inspections normally occur on an annual basis and a variety of forms are to be completed during the inspection depending on the type of commercial inspection. The field rep will be asked to inspect at the least the exterior of the property and may be asked to inspect the interior, the warehouses, the production facilities,etc. Commercial inspections are nothing more than property inspections in a different environment. The field rep is not at the commercial establishment to inspect the commercial activity but to inspect the physical property that houses the commercial activity. Some commercial inspections you may be asked to perform are: Gasoline stores/franchises Quick food establishments (burgers, chicken, etc.) Motorcycle shops Hardware stores |
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| Comparative Market Analysis | A comparison of comparable properties sold and offered for sale in the neighborhood of a property that is going to be sold. Performed by a licensed real estate broker. Performed to determine the correct selling price of a home. |
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| Compliance Inspection | This inspection is to determine if the repairs, or improvements, required to bring the mortgaged property into compliance have been completed in a good and workmanlike manner, so that the funds in escrow can be released. |
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| Condition Report | Report on the condition of industrial machinery, business equipment, trucks, construction equipment, vehicles, etc. The inspection may request the VIN or serial number, overall condition, clocked hours or operation, etc. Photographs are usually requested. |
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| Construction Funding Reports | The inspection of a property at certain stages of the construction to determine and report on the percentage of completion of work. The construction funding report helps determine the release of construction funds to the owner and/or contractor.
The financial institution loaning money for a home or business construction loan distributes money to the owner and/or contractor only at various stages of construction.
Contact is made with the owner, contractor or representative listed on the inspection request form and an appointment is set for the field rep to perform the inspection.
Photos are usually requested.
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| Contact Ratio | The number of times personal contact is made with someone at the inspection address contrasted to the number of times no contact is made. |
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| Contractor Recruiter | The company representative that recruits independent contractors to perform property preservation services. |
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| Conveyance Condition | Once a property has gone to sale, the property must satisfactorily meet certain physical attributes so that its control may be transferred to HUD/FHA. • The requirements for a property to be considered In conveyance condition are: • The mortgage company has clear title to the property. This is usually accomplished as a result of the foreclosure sale • The property is not occupied. If the property is occupied after the foreclosure sale, the mortgage company must go through eviction proceedings • The property is secure and has been secured following the guideline requirements including lock codes • Outbuildings are secure and have been secured following the guideline requirements including lock codes • Boarding, if required, has been completed and was completed following the guideline requirements • Pools, hot tubs, and/or spas are secure per the guideline requirements • The property has been winterized per the guidelines • Utilities have been transferred into the mortgagee's name, if required by the guidelines. This requirement depends on heating system type and regional variation • If the property has a sump pump, the sump pump is functional and electricity is on and transferred into the mortgage company's name. Exterior debris and health hazards have been removed from the property per the guideline requirements • Interior debris and health hazards have been removed from the property if guidelines for that area call for removal • Personal property has been removed from the property per the guideline requirements • Grass has been cut within two weeks of conveyance, if conveying during grass cut season The property is free from any damage, other than that due to mortgagor neglect/unfinished renovations, except for fire, water, freeze, flood, earthquake, tornado, hurricane, boiler explosion, vandalism, and roof damages. There are no outstanding property condition code violations or citations. If any of the above listed is not completed, the property is not in convey condition. The only exception to these requirements occurs if HUD has been advised of an issue where the requirements have not been met and has agreed to accept the property as is.
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| Conveyance Inspection | A visual inspection to determine if property is in conveyance condition. Inspection is completed on conveyance date and includes information about the condition of the property, if locks have been changed, has all debris been removed, is the property secure, etc.). |
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| Date Range | A specific starting date before which the property can not be inspected and an ending date, after which the inspection can not be inspected.
Example: “Inspect between May 11 and May 28”.
Often required by FHA requirements |
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| Davis-Bacon and Related Acts | DBRA
The Davis Bacon and Related Acts (DBRA) requires all contractors and subcontractors performing work on federal or District of Columbia construction contracts or federally assisted contracts in excess of $2,000 to pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits for corresponding classes of laborers and mechanics employed on similar projects in the area. The prevailing wage rates and fringe benefits are determined by the Secretary of Labor for inclusion in covered contracts. |
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| Debris Removal | A property preservation service in which the interior, exterior and hazardous debris are removed from a property. Specifications for the service will be dictated by the client or will follow the regulatory specifications for the loan type. If the service is for a loan type with no applicable regulatory specifications, the HUD specifications, and HUD reimbursable fee schedule, will be followed. If the debris, for any loan type, cannot be removed for the published reimbursable fee, a bid for removal is normally provided. |
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| Delinquency Interview | A type of inspection where contact with the occupant(s) is required and the field rep is to find the owner’s reason for late payments and any other financial information the lender may want. The interview is to be with the mortgagor only and not discussed with tenants, renters or spouse unless the spouse is also listed on the delinquency interview request. |
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| Desk Topping | The practice of filling out an inspection report while at the kitchen table without actually having been to the property. |
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| Direct Contact | The terminology used to identify a type of field service request giving instructions to speak with the individual indicated on the paperwork. The information to be gathered usually accompanies the field service request. |
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| Discount | The terminology used to identify a type of field service request giving instructions to speak with the individual indicated on the paperwork. The information to be gathered usually accompanies the field service request. |
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| Door Hangar | A stiff paper cut-out designed to hang on a door knob or a contact letter in an envelope.
Contains information reqesting the home owner to call their lender. |
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| Drive-By | An inspection type where there is no need to contact the occupant! Visual inspection to determine occupancy and condition. |
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| Due Date | The date the inspection report is due back to the company. |
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| E & O Insurance | Also known as Professional Liability Insurance. Protects your business from claims caused by charges of professional negligence or failure to perform your professional duties. |
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| Environmental Inspection | Inspection of items listed on the work order request presenting a potential environmental concern at the property. Public Records search and visits to the subject property are made to obtain the requested information. Contact with the occupants of the property usually occurs only if unable to obtain the information visually or through the public records for the property. |
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| Estimated Market Value | An estimation of value. Non-licensed inspectors can often perform these inspections. |
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| Eviction | Discharging occupants and their personal property from a property guided by local and/or state laws. Must be performed according to the regulatory specifications for the loan type, unless otherwise instructed by the local law enforcement official on site, or local or state statute. |
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| Exterior Debris | Anything on the outside of residence. Exterior debris removal is bid by the cubic yard. A cubic yard is about the size of a washing machine.
The following items are considered exterior debris but they are not bid by cubic yard. They are bid separately.
# Any type of internal combustion engine - bid to haul off
# Swingsets and basketball goals - bid to dismantle and haul off
# Tires - bid for disposal
# Chemicals - bid as health hazards.
# Burn piles - bid by size
# Automobiles, Motorcycles, Lawn Mowers - bid to tow or haul off
# Dog houses or pens - bid to dismantle and remove |
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| Face to Face Interview | Personally meeting with the property owner. The lending institution uses the information gained to update company information concerning the property owners employment, income, financial obligations, additional income and repayment proposals. |
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| Fair Debt Collection Practices Act | Abbreviation for The Fair Debt Collection Practices Act implemented by the Congress to protect consumers from being harassed by debt collectors. Ensures that the collection agencies collect debt payments without adopting unlawful means. |
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| Fannie Mae | Federal National Mortgage Association or FNMA. A congressionally chartered corporation which buys mortgages on the secondary market, pools them and sells them as mortgage-backed securities to investors on the open market. Monthly principal and interest payments are guaranteed by FNMA but not by the U..S. Government. |
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| Fannie Mae Form 30 | This inspection is for Federal National Mortgage Association (Fannie Mae) loans and is a visual inspection to provide the latest property and area conditions and any conditions that could potentially affect the value or marketability of the property.
This inspection provides the needed property information obtained from a physical inspection for completion of the Fannie Mae Form 30. |
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| FDCPA | Abbreviation for The Fair Debt Collection Practices Act implemented by the Congress to protect consumers from being harassed by debt collectors. Ensures that the collection agencies collect debt payments without adopting unlawful means. |
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| Federal Emergency Management Agency | The Federal Emergency Management Agency’s mission is to lead the effort to prepare the nation for all hazards and effectively manage federal response and recovery efforts following any national incident. |
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| Federal Housing Administration | A division of the Department of Housing and Urban Development (HUD), this government agency insures residential mortgage loans that are made by private lenders, protecting the lenders against loss in the event of borrower default. The FHA also sets standards for underwriting mortgage loans. |
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| Federal National Mortgage Association | FNMA or Fannie Mae. A congressionally chartered corporation which buys mortgages on the secondary market, pools them and sells them as mortgage-backed securities to investors on the open market. Monthly principal and interest payments are guaranteed by FNMA but not by the U..S. Government. |
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| FEMA | The Federal Emergency Management Agency’s mission is to lead the effort to prepare the nation for all hazards and effectively manage federal response and recovery efforts following any national incident. |
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| FHA | The Federal Housing Administration (FHA), which is a part of the Department of Housing and Urban Development (HUD), provides federal mortgage insurance which ensures that mortgage lenders will be reimbursed in the event homebuyers default on the mortgage. When a lender is forced to foreclose on an FHA-insured single family home, townhome, or condominium because the owner can no longer make payments, it can file a claim with FHA for the balance due on the mortgage and convey title of the property to HUD. |
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| Field Chase | A term for a field assignment most commonly used by those looking for vehicles of delinquent borrowers. The phrase is seldom used by field inspectors that concentrate on real estate types of field inspections. |
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| Field Inspection | A visual inspection of property or other collateral such as construction equipment, motorcycles, computers, etc. The inspection may involve interviews with the property owners or occupants. |
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| Field Services | An on-site performance of a task for another interested party that does not have the ability or desire to do the task for themselves. The task requires the use of one or more senses - sight, sound, touch, smell, etc. |
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| First Time Vacant | The term used to identify the first report of a vacant property. |
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| Flood Hazard Inspection | Flood Disaster Protection Act
The Flood Disaster Protection Act (FDPA) was passed by Congress in 1973 to expand the National Flood Insurance Program established by the National Flood Insurance Act of 1968. The purpose of the act is to mandate participation in the National Flood Insurance Program as a condition for receiving federal aid in financing the construction, purchase, repair, or improvement of a building or
mobile home located in a flood hazard area (SPFA).
Further amendment to the Act was passed in 1974 requiring all federally regulated or insured lenders to notify a prospective borrower, before settlement, if the property securing the loan was located in a special flood hazard area. Essentially this means that the lender now had to make sure there was a
flood insurance policy in effect on the loan if the property was in a special flood hazard area. A further amendment to this Act in 1977 made it mandatory for the lender to notify borrowers whether they would be eligible for federal disaster assistance in the event of a declared flood disaster.
The act was again revised in 1994 (National Flood Insurance Reform Act) to broaden the mandatory flood insurance requirements of the NFIP, placing primary responsibility for ensuring compliance with the act on lenders by compelling them to do the following:
• Follow more disciplined initial borrower notification requirements.
• Force-place the required flood insurance for borrowers who do not purchase or maintain it.
• Escrow flood insurance premiums on residential and mobile home loans along with escrows for
taxes and insurance.
• Document a determination that a mortgaged property is flood prone.
Under NFIA, once a community has been declared to be in a special flood hazard area by the FEMA (including mudslide, or flood erosion risk), it has one year in which to become a participant in the National Flood Insurance Program, or no federal financial assistance will be forthcoming. The importance of this to lenders is that flood insurance is required on any loan secured by a property
where any portion of the structure is located in a special flood hazard area where the community is
participating in the National Flood Insurance Program. Essentially the burden of determining whether the location of the property is in a special flood hazard area rests on the lender.
Requirements
Flood Insurance is required on loans made by federally regulated lending institutions if the following
criteria exist:
• The community in which the property is located is participating in the National Flood Insurance Program; and
• Any portion of the structure on the property securing the loan is located in a special flood hazard area.
Compliance
Properties Eligible for NFIP Coverage
Any walled or roofed structures other than gas or liquid storage tanks, that are above ground and affixed to a permanent site are eligible properties under the National Flood Insurance Program. Most buildings under construction are also eligible for coverage. Manufactured homes are eligible for coverage if they are on permanent foundations and anchored to resist floatation, collapse, or lateral
movement. Among properties that are NOT eligible for coverage are recreational vehicles, park trailers and travel trailers. Separate flood policies are required for each individual building, although coverage is extended to detached garages and carports that service the insured dwelling. For condominiums, a Residential Condominium Building Association Policy is available through the homeowners associations.
Lender Compliance
Federally regulated lenders must ensure flood insurance is in place at closing and for the entire term of the loan for mortgages secured by structures located in a special flood hazard area. The burden of determining whether the location of the property is in a special flood hazard area is on the lender, even when a third-party flood determinations company is used to make the determination.
Under the reforms instituted by the 1994 Revision, lender responsibilities include the following:
• Determining whether the building offered for security is, or will be, located in a special flood hazard area (SFHA);
• Documenting the determination of flood hazard status
• Requiring that flood insurance to the appropriate limit is obtained when necessary; and
• During the term of the loan, ensuring that flood insurance is maintained or added if the lender becomes aware that the building involved subsequently becomes part of an SFHA.
When a lender determines that a property is in a SFHA, they must notify the borrower who is purchasing the property of the following:
• The property to be held as security on the loan is located in a special flood hazard area.
• Flood Insurance is required in order for the lender to make the loan and should be for the principal
amount of the loan or the maximum amount available under NFIP.
• Whether or not federal disaster relief will be available in the event of damage to the property from a flood.
The notice to the borrower must contain specific language and must be delivered to the borrower prior to the closing of the loan. The lender should be named as mortgagee on the policy to protect the lender’s interest in the event of damage to the building. The flood insurance coverage must be in place at the time of closing and must be maintained for the term of the loan. If the lender at any time determines that the coverage has lapsed and the borrower refuses to reinstate the policy, the lender must force-place insurance on the loan. |
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| Flood Hazard Verification | Verification of the location of a property on a plat map or a drawing provided to the inspector. Require measurements from specific points to show the property location in relation to other landmarks such as streets, bodies of water, etc |
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| Floor Plan Financing | A specializied segment of lending where banks provide working capital support for retailers of consumer goods such as automobiles, recreational vehicles, boats, and big ticket appliances. Generally, the large investment and/or slow cash conversion cycle limits a retailers ability to internally finance its inventory. The bank provides funding for the purchase of inventory and normal operating expenses until the inventory is sold. |
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| Floor Plan Inventory | A count of items in inventory to determine what has been sold and what is still on site. |
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| FNMA | Federal National Mortgage Association or Fannie Mae. A congressionally chartered corporation which buys mortgages on the secondary market, pools them and sells them as mortgage-backed securities to investors on the open market. Monthly principal and interest payments are guaranteed by FNMA but not by the U..S. Government. |
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| Follow Up List | A list of inspections that can not be closed out until a problem or question is answered to the satisfaction of the company sending the list. Common problems are \"your information does not agree with the information we have on file\", \"the picture you submitted does not match the picture we have on file\", etc. |
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| Forebearance | A refraining from the the enforcement of something (as a debt, right, or obligation) that is due.
Dictionary.com. Merriam-Webster's Dictionary of Law. Merriam-Webster, Inc. http://dictionary.reference.com/browse/forebearance (accessed: March 04, 2007). |
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| Foreclosure | This is the process by which a lien holder aquires the property through court procedures. Each state operates a little differently, but this process can typically take several months once started and typically does not start until the owner is 60-90 days behind in payments. |
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| Foreclosure Inspection | Inspect to determine the occupancy status and exterior condition of a property. No contact can be made with the homeowner. Contact may be made with neighbors to help determine occupancy. Can not discuss legal status, loans, etc.
Photographs required. |
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| Fraud | A deception deliberately practiced in order to secure unfair or unlawful gain |
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| Freddie Mac | A corporation, created by Congress, that purchases conventional mortgages from lending institutions (that are members of the Federal Reserve) and sells them as securities to the dealer community. (See Fannie Mae, which sells them directly to investors.) |
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| FTV | Abbreviation of \"First Time Vacant\" : The term used to identify the first report of a vacant property. |
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| Gated Community | A form of residential community sometimes characterized by a closed perimeter of walls and fences, but always containing controlled entrances for pedestrians, bicycles, and automobiles. Gated communities usually consist of small residential streets and include various amenities. For smaller communities this may be only a park or other common area. For larger communities, it may be possible for residents to stay within the community for most day-to-day activities. |
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| Ginnie Mae | Government National Mortgage Association (GNMA or Ginnie Mae) - A government-owned corporation within the U.S. Department of Housing and Urban Development (HUD). Created by Congress on September 1, 1968, GNMA performs the same role as Fannie Mae and Freddie Mac in providing funds to lenders for making home loans. The difference is that Ginnie Mae provides funds for government loans (FHA and VA) |
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| GNMA | A government-owned corporation within the U.S. Department of Housing and Urban Development (HUD). Created by Congress on September 1, 1968, GNMA performs the same role as Fannie Mae and Freddie Mac in providing funds to lenders for making home loans. The difference is that Ginnie Mae provides funds for government loans (FHA and VA) |
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| Government National Mortgage Association | A government-owned corporation within the U.S. Department of Housing and Urban Development (HUD). Created by Congress on September 1, 1968, GNMA performs the same role as Fannie Mae and Freddie Mac in providing funds to lenders for making home loans. The difference is that Ginnie Mae provides funds for government loans (FHA and VA) |
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| Greed | An excessive desire to acquire or possess more than what one needs or deserves, especially with respect to material goods. |
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| Hazardous Waste | A solid waste or combination of solid wastes that, because of quantity, concentration or physical, chemical or infectious characteristics, may cause or significantly contribute to an increase in mortality or an increase in serious, irreversible, or incapacitating reversible illness or pose a substantial hazard to human health or the environment when improperly treated, stored, transported, disposed, or otherwise managed. Some common hazardous waste you may find in properties are household chemicals, feces, rotten foods, tires, batteries, petroleum products, paints, asbestos, etc. |
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| Hazardous Waste Removal | The legal and moral obligation to dispose of hazardous waste in a manner that will minimize damage to health and the environment. Hazardous waste is strictly regulated by the Environmental Protection Agency under the Resource Conservation and Recovery Act (RCRA). This Act mandates a \"cradle-to-grave\" system for managing hazardous waste and applies to those who generate, store, transport, treat, recycle, or dispose of hazardous waste. The purpose of the Act is to protect human health and the environment from improper waste management practices. |
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| Home Inspection | An examination of the structure and mechanical systems to determine a home\'s safety; makes the potential homebuyer aware of any repairs that may be needed. This term is often confused with the term \"Mortgage Inspection\" which is the business of obtaining and/or verifying information for lenders. |
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| HUD | Department of Housing and Urban Development. Federal agency responsible for encouraging housing development |
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| HUD Homes | These are homes that had an FHA-insured mortgage and the homeowners defaulted. The lender then deeded the home to the Secretary of HUD in exchange for an insurance claim payment. |
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| HUD REAC | The Real Estate Assessment Center (REAC) is an organization within HUD Public and Indian Housing (PIH) that is responsible for capturing, standardizing, improving and evaluating data from the portfolio of properties for which HUD has a financial interest or statutory obligation to monitor. HUD requires periodic physical property inspections conducted by HUD/REAC certified inspectors in conformance with HUD\'s Uniform Physical Condition Standards (UPCS). To ensure consistency and uniformity of inspections, inspectors must utilize a laptop computer \"data collection device\" (DCD) and UPCS inspection software to capture inspection results, which are uploaded via the Internet to PASS. The system then facilitates numerous functions including ordering, reverse auctioning and review of inspections as well as publication of inspection results. |
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| HUD-50002 | HUD Form "Request to Exceed Cost Limits for Preservation and Protection," |
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| ICC | In conveyance condition |
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| Independent Contractor | A self-employed individual working under contract to perform a specific task for another. |
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| Initial Inspection | An exterior occupancy inspection used to verify occupancy. Usually requested when the mortgage company first places a mortgage on the property or when some legal action is taking place against the propery. |
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| Initial Secure | Term used in the property preservation portion of the field service business. In order to place a property in marketable condition, certain services are usually performed at a property. These services generally include: lock change and lock box installation removal of interior and exterior trash boarding of damaged windows and/or doors remove abandoned vehicles cut grass, trim shrubs, edge lawn broom sweep interior winterize and or de-winterize as necessary remove snow take pictures submit damage and condition report |
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| Inspection Window | A range of dates in which the inspection must be performed. Example: Inspection Window from 2/27/2006 to 3/14/2006. |
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| Insurance Loss Inspection | Inspection for property that has been damaged by some event (i.e., fire, water, wind, etc.) to insure that insurance repairs have been completed. Performed for the mortgage company to verify the property has been restored to its condition before the loss occurred. Used to help mortgage servicers and lenders determine the proper distubtion of funds being held and designated for the completion of repairs at damaged properties. In order to protect the value of the property used as security against loans, mortgage servicers and lenders need to insure that repair funds are released timely and used to repair and improve the damaged property. |
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| Insurance Loss Report | This inspection is used to have the field inspector visit a property that has had repairs performed with funds from an insurance claim. The damage could have been anything including flood, wind, fire, vandalism, etc. Most mortgage and insurance companies release funds in stages; normally in thirds. Hopefully you will be furnished with a scope of damage so that you may determine what percentage of the repairs have been completed. All companies place a high priority on insurance loss inspections and there are very specific contact instructions as an appointment must be made with homeowner and/or contractor doing the repairs. |
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| Interior Debris | Odds and ends left on the inside of a property.Companies usually will have a monetary value that elevates an item from debris status to personal property status.Even though a storage shed or garage may be detached and outside, any debris in either is considered interior debris. |
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| Interior Inspection | A visual inspection of the interior of a property that has previously been reported as vacant and has been secured. A visual inspection to determine if there is any visible damage or situation that needs to be reported to the client. |
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| Inventory Survey & Valuation | An inspection and report on retail, wholesale, raw material and work-in-process inventories. |
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| Keyed Alike | Two or more locks that operate with the same key. An example of this is front and rear entrances to your house can be keyed alike to allow you to only carry one key to open either lock. |
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| Lawn Maintenance | Perform the necessary lawn maintenance to maintain a property\'s appearance. Perform measures to prevent any degradation to the grounds and relieve the property of any existing or potential violations. HUD specifications are normally followed for all loans with no applicable regulatory guidelines, unless otherwise instructed. |
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| Lead Based Paint Inspection | Samplings to determine presence and/or levels of active lead dust. Comparison to EPA acceptable levels satisfying the requirements of real estate transfers |
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| Leased Equipment Inspections | An on-site inspection service to banks, leasing companies and other financial institutions to assure them that their equipment is on-site at the lessee location prior to funding a lease. |
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| Legal Investigation Inspection | This inspection is performed to provide the names of all occupants of a property and determine the location of the owner, if not residing at the property. Each attempt to obtain information is clearly documented for legal reference. |
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| Liability Insurance | Insurance that provides protection from claims arrising from injuries or damage to other people or property. |
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| Local | A company that needs independent contractors only in a certain area such as a state within the country. |
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| Lock Box | The type of lock primarily used for REO properties in addition to a regular lock, where a key is installed inside of the box and the box is attached to the outside of the door. To open the lock box you must first have the combination code. |
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| Lock Change Only | Change the lock(s) at a property to the key code according to the regulatory requirements for the loan type, unless otherwise instructed. For loan types with no applicable regulatory guidelines, the HUD guidelines are normally followed. |
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| Lock Out | The process of securing a property to prevent re-entry by the former occupant. In most states the owner of the property can evict the occupant for various reasons such as non-payment, but owner must first file a lawsuit, win this lawsuit, and then pay the Sheriff for eviction. It is illegal in most states to lock out the occupant without following these procedures. |
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| Lock Re-Keying | See also: Re-Keying |
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| Loss Control Certification | A training and testing program designed to provide essential information necessary to perform various types of loss control inspections. Training includes inspection guidelines in detail and provides reasons why the inspection points are important. Certification by testing qualifies those who are performing or wish to perform commercial type insurance inspections such as high-end loss control inspections. |
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| Loss Draft | Payment of insurance proceeds for a claim resulting from a loss to insured mortgaged property. |
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| Loss Mitigation | A process to avoid foreclosure whereby the lender tries to help a borrower who has been unable to make loan payments and s in danger of defaulting on the loan. |
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| M&M Contractor | Management and Marketing (M&M) Contractors market and manage single-family properties owned by, or in the custody of the U.S. Department of Housing & Urban Development. |
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| Master Keying | A lock system in which locks are designed to be opened by their individual keys and by a special \"master\" key that will also open some or all other locks in the system. Master key systems are commonly found in commercial, industrial, educational and government facilities as well as in local property management. Master keying is used because it allows those who must have access to many locks (landlords, maintenance workers, managers, etc.) to carry only a few keys. |
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| Maximum Allowable Securing Fee | An overall cap for the various costs required to secure a property by securing windows and doors to prevent against unauthorized entry and to protect against weather damage. The term \"One-Time Securing Fee\" is the phrase previously used in HUD documents. |
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| Merchant Site Inspection | A visual analysis of a business usually requested by credit card processing companies. This inspection assists in determining the legitimacy of the business and helps to prevent fraud. Photos of the business signs, one interior and one exterior photos are usually requested. |
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| Minimum Securing to Specification | Perform all necessary
property preservation according to the applicable regulatory guidelines for the
loan type or client profile. For loan types with no applicable regulatory guidelines,
the HUD guidelines and fee schedule are to be followed.
Services typically include
changing entry lock or keyway, locking all windows and doors, winterizing to the
applicable specification and maintaining the grounds when in season. |
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| Mortgage Notary Signing Agent | A Mortgage Notary Signing Agent is a commissioned Notary Public who specializes in the process of obtaining and notarizing the signatures of the party(ies) involved on real estate loan documents for the purpose of closing a real estate loan transaction. |
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| Mortgage Servicing | The activity of keeping a mortgage loan current, including collecting monthly mortgage payments, forwarding principal and interest payments to the current mortgage holder (if the loan has been sold), maintaining escrow accounts, paying taxes and insurance premiums, and taking steps to collect overdue payments. Mortgage servicing may be performed by the original lender, or the lender may sell the right to service a mortgage to another company, which performs the service for a fee. Some companies, including some savings associations, specialize in servicing mortgages, both their own and those made by other lenders. The original lender may sell the mortgage servicing rights to one company and sell the mortgage itself to another company. See mortgage servicing rights. |
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| Mortgage Servicing Rights | An asset consisting of the right to service mortgage loans for others, however those servicing rights are acquired.
A mortgage banking enterprise may acquire mortgage servicing rights through either the purchase or origination of mortgage loans or purchase of servicing rights to the loans of other banking enterprises. |
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| Mortgagee | The lender in a property mortgage transaction who holds the lien on a property as security for debt. |
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| Mortgagor | The borrower in a property mortgage transaction who pledges the property as a security for a debt. |
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| NAMFS | National Association Mortgage Field Services.
www.namfs.org |
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| National | A company that has need for independent contractors in all 50 states. |
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| No Show | The party that fails to show up for an appointment. Used in the field services business to label a homeowner that is not home when the inspector arrives for an appointment. Also used to label the inspector that fails to make an appointment |
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| Notary Public | A person legally empowered to witness and certify the validity of documents and to take affidavits and depositions. |
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| Occupancy Roll | A listing of apartments at an apartment complex which indicates which units are occupied and which are vacant. This listing will be kept current so that apartment employess can quickly locate vacant units to lease to potential occupants. This list is made available to inspectors so that they can determine which vacant units they would like to inspect. |
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| Occupancy Verification | An inspection to determine if a property is occupied and the name(s) of the occupant. Contact with the occupant is authorized unless the inspection request indicates that no contact is to be made. |
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| Occupany Inspection | This inspection is performed to determine whom, if anybody is occupying the property. Additional information may be requested such as full names, contact phone numbers, rental information (if applicable), agent or property manager information and the number of units will be provided, if it can be determined at the time of inspection.A property condition report (PCR) and any existing or potential conditions that could effect the value of the premises may also be requested. |
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| One Time Securing Fee | Term previously used by HUD to identify the maximum fee that would be paid for the various costs required to secure a property by securing the windows and doors to prevent against unauthorized entry and to protect against weather damage. The term \"One-Time Securing Fee\" is now known as the \"Maximum Allowable Securing Fee.\" |
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| Out Of Area | A city, county, zip code or possibly a state that a field services company would not normally work for some reason. The reason is immaterial; if the area is not covered, then it is Out Of Area. |
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| Outstanding Inspections | Any number of inspections that have not been completed. On occasion a company may ask a field rep to perform some of their outstanding inspections. These will be inspections the company has been unable to have completed. The reasons for noncompletion are numerous and can include having no rep in the area of the inspections, illness of a rep or the outstanding inspections are of hard to locate properties and no one has been able to locate, etc. If a field rep has any inspections that have not been returned by the due date, these inspections will be on some company\'s outstanding inspection list. |
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| Outstanding List | Assignments reported as not finished. |
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| Padlock Pool | Secure the pool/hot tub gate according to the HUD specifications for the area where the property is located. This service may also be provided on any securing order, when required by the regulatory guidelines for the loan type. |
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| Padlock Pool Gate to HUD Specification | Secure a pool and/or hot tub gate according to the HUD specifications for the area the property is located. |
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| Personal Property | A type of property which, in it\'s most general definition, can include any asset other than real estate. The distinguishing factor between personal property and real estate is that personal property is movable. That is, the asset is not fixed permanently to one location as with real property such as land or buildings. Examples of personal property include vehicles, furniture, boats, collectibles, etc. |
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| Pool Securing | Secure the pool or hot tub at the property according to the regulatory requirements for the loan type. This could include decking, screening, pumping water out of the pool, chemical treatment and padlocking the pool gate if required. If no regulatory guidelines are applicable for the loan type, the HUD guidelines, and pricing schedule, will be followed. As with any property preservation work, if the work cannot be completed for the published price, an estimate will be provided to complete the securing. |
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| Post Sale | After the sale. Post sale inspections are used to correctly determine condition and occupancy status of property so that any actions needed for taking physical possession can be arranged. |
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| Pre-Foreclosure | This is commonly referred to as the time during the foreclosure process but before the sheriff’s sale. In this time period you are still negotiating with the seller but the bank may have to be consulted in cases where a short sale is needed. |
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| Pre-Funding Leased Equipment Inspection | An on-site inspection of any leased equipment. The information requested my include asset description, serial number and condition. Photographs are usually requested and included with the report. |
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| Pre-Set Appointment | The time and place of meeting with the homeowner has been set prior to the inspector receiving the request. The inspector is to show up at the time & place or call the homeowner to arrange a different time and/or location. |
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| Prepare for Conveyance | After the foreclosure sale is held or the redemption expires for the property, ensure all necessary work required by the regulatory guidelines for the loan type is complete, and the property is in conveyance condition. If any work is needed to bring the property into conveyance condition, you will complete the work for the loan type\'s published regulatory fee schedule. |
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| Prepare to Convey | After the foreclosure sale is held or the redemption expires for the property,
ensure all necessary work required by the
regulatory guidelines for the loan type is complete, and the property is in
conveyance condition. |
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| Property Inspection | This inspection provides the current condition of the property, the occupancy and/or vacancy status and if there are any existing or potential conditions that could impact the value of the premises.Contact with the occupants of the property is normally not required or requested when completing this type of inspection. If the property appears to be vacant, an attempt to verify the vacancy status with a neighbor is often requested. |
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| Property Preservation | The process of insuring the security of a property and minimizing damages and hazards. Any and/or all of the following services are included in the process. Allow Access Allow access to a prop |
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