When you look at the structure of a national Mortgage Order Mill (MOM) you might expect that they would have a strong network of field service inspectors with a coverage area that looks like a Verizon cell tower coverage area … like the one shown below. The problem is that the Mortgage Inspection Mills (MOMs) pay such low fees that they cannot attract new mortgage inspectors. Their networks are very weak and fragmented. Mortgage inspector turnover is very high!
The profit on a $3 mortgage inspection is maybe $1.50. Plus, the inspector must pay about $1,265 upfront for a background check and E&O insurance. Mortgage inspection fees were higher 25 years ago than they are today and there were no insurance requirements. No one wants to work for FREE. Hence their networks are weak. They force their mortgage inspectors to travel outside of their service area. Some MOMs even define the inspector’s service area and the inspector has nothing to say about it. Some MOM networks are so weak that they will force a mortgage inspector to travel 50 miles to perform a $3 mortgage. If the inspector refuses, they lose all of their work in a nanosecond. The inspector’s work que disappears. Their final pay check is delayed.
The mortgage segment is also the home of 99.5% of the fraud, greed and corruption in the industry.