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

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.