Mortgagee Inspections
Lenders of HUD-Insured Multifamily Housing Properties are responsible for performing physical
inspection of each of their properties using HUD REAC protocol and HUD REAC certified inspectors.

Mortgagee: lender
Mortgagor: borrower

Main Features
Servicing Mortgagees use the HUD-Real Estate Assessment Center (REAC) inspection Protocol.
HUD published a final rule in December 2000 which among other things altered the Frequency of
inspections to be performed by the mortgagees. Frequency of inspections depends on the Property
score:

90 and above inspected every three years
80-89 every two years
less than 80 every year

Timing of Inspections:
Inspections can take place 3 months before or after the inspection ideal date. However inspections
cannot be conducted after the end of the calendar year following the anniversary date of the last
required inspection (i.e. A property with ideal inspection date of 10/31/07 the inspection latest
inspection date first will be 12/31/07 and not 1/31/07). For properties with no prior inspections the
inspection due date (in REMS) plus 24 months.