MBA Urges HUD to Publish Notice About Ongoing Challenges With NSPIRE Protocol

The Mortgage Bankers Association asked HUD for assurance that servicers will not be held accountable for compliance with the new National Standards for the Physical Inspection of Real Estate (NSPIRE) system until it is “fully accessible and usable to each participant.”

In a letter to Ryan LaFollette, Acting Deputy Assistant Secretary with HUD, MBA President and CEO Robert D. Broeksmit, CMB, said he respectfully requests that HUD provide written assurance that servicers will not be held accountable for compliance with the new NSPIRE system until it is fully accessible and usable.

“Servicers of Federal Housing Administration loans are required to conduct inspections in a timely fashion, and any deficiencies are corrected per the Real Estate Assessment Center protocol,” Broeksmit said. “However, accessibility issues as well as system bugs that still must be worked through in the new NSPIRE system are preventing these activities. Since the implementation of NSPIRE in October, servicers have experienced difficulties logging into the system, scheduling inspections, maintaining inspection schedules and reviewing reports. Problems with the software and incorrect data have left a number of servicers unable to access the system. For those inspections that are completed, many servicers are unable to access the reports, with no ability to follow up on any potential necessary repairs.”

Servicers have expressed concern that they will be held accountable for not carrying out these responsibilities on HUD properties due to a lack of accessibility and data from the HUD-controlled NSPIRE system, the letter said. “MBA urges HUD to provide a written assurance to the FHA loan servicing community that they will not be held accountable for NSPIRE requirements until the system is fully operational and accessible to each participant. Servicers are doing their best to work with the new system, but NSPIRE problems must be solved to enable servicers to comply with its requirements. We urge you to make this clear though an official notice or memorandum,” Broeksmit said.

MBA is in the process of setting up meetings with HUD to continue discussions on the NSPIRE system.