TREC Inspector Summit Preliminary Feedback

[Michael R. Boyett]

Well, I just got back from an all day trip over to TAMU to attend the TREC Inspectors Summit. Lot's of good stuff got discussed and some not so good stuff. I'm tired now but will try to have a better set of notes tomorrow. In the meantime:

1. 21 attendees inc. TREC staff, trade association representatives, Inspector Advisory Committee members.
2. Moderated by Director of the TAMU Real Estate Center.
3. Defined 20 top issues affecting Texas inspectors then culled it down to the top ten. Those details will be in the notes that the moderator sends later in the week.
4. Agreed philosophically that the Big 4 trade associations in Texas, i.e. iNACHI, TAREI, TPREIA and ASHI should and would meet to see if consensus can be reached on the top issues and proposed solutions.
5. Big push by EBPHI (ASHI) to 'sell' the NHIE to replace the existing proprietary exam....surprisingly that proposal was met with some level of acceptance.
6. Comm Eckstrum somewhat clarified his earlier cryptic remarks by saying he had nothing specific but that the Legislature & TAR was looking for ways to address the coming state revenue shortfall and that inspectors could be a target, among many others, for things like additional fees, sales tax on inspections, & other revenue generating ideas and that inspectors need one voice to counter some of those ideas.
7. Multi-trade association meetings are step one.

[Richard W. Washington]

i am going to be attending a similar meeting here in Houston on Friday and understand they are taking place at major cities around the state. These meetings, from what I understand, are designed to bring together all Texas inspectors with a unified front as to our "voice". I have been hearing from other local inspectors about the state targeting inspectors to try and move us over to be under, for instance, the state dept of insurance. This is not unlike pest control operators from a few years ago.

[Michael R. Boyett]

Those meetings are slightly different than the one today. The meetings around the state are open to all TREC licensees, i.e. brokers, agents, appraisers, inspectors, etc to solicit input to the TREC Strategic Plan. The invitation only meeting today focused only on inspectors and began to define what our top issues are and how we might develop one voice to be heard by TREC and the legislature.

[Michael R. Boyett]

Originally Posted by jcahill

The purpose of the meeting was misrepresented. No meaningful discussion occurred about what may happen to us in the next legislative session.

Did you and I attend different meetings?

The intent, as defined in the invitation, read:

The goals of the summit are simple - provide an initial forum for open communication on key issues facing the Inspection industry in Texas today, and work on methods for reaching a fair consensus on a way forward.

This is a unique opportunity for collaboration toward solutions to current challenges. This is a small group and every invitation is important. Please attend and participate with an open mind and a cooperative disposition. We value your input and need your contribution.

[Michael R. Boyett]

1. Where was it said that the meeting would 'address future legislation"? I missed that.
2. There was discussion of promoting more inspectors when no more are needed. Did anyone voice a differing opinion?
3. The topics for discussion were mostly baloney...I thought for a 1st pass it was pretty good and can easily be tweaked and added to now.
4. I'm not going to write a more detailed summary...all the needs to be said was posted above.
5. I'm not convinced at this point that the inter-association meetings will even take place. We'll see.

[Nick Gromicko]

Agreed philosophically that the Big 4 trade associations in Texas, i.e. iNACHI, TAREI, TPREIA and ASHI should and would meet to see if consensus can be reached on the top issues and proposed solutions.

I may be incorrect, but it is my impression that ASHI is not in Texas and has no or very few members in Texas compared to InterNACHI's 350 members.

[Michael R. Boyett]

At least 3 of the 21 folks at the meeting yesterday were ASHI including one that sits on the EBPHI board as VP and another as the Lone Star ASHI president. All 3 heartily promoted the NHIE.

[Michael R. Boyett]

Originally Posted by jcahill

4 But you said you would! What were the top 30 recommendations and what was it whittled down to?

Maler said he would provide the official notes of the meeting to Adm Oldmixon for further distribution. Remember, I asked that 1st thing at the meeting so I would know how detailed of notes I needed to take.

[Michael R. Boyett]

Here are the "Issues" from Adm Oldmixon:

Real Estate Inspector Summit

REC at TAMU

22 March 2010

Notes

Issues confronting the industry today:

• E/O insurance is mandatory; why?
• E/O providers; limited number of underwriters
• Frivolous lawsuits; some from non-client parties
• Continued loss of good quality inspectors due to E/O Insurance requirement
• Liability claims from sellers
• Lack of representation of inspectors as one voice on behalf of the industry
• Lack of unified legislative representation
• Education related issues; better definition of the education process needed
• Poor quality of online education
• Stricter guidelines for CEUs; should focus on standards of practice
• Increase/double the number of annual CEU’s required
• Is our motivation Consumer Protection or Inspector Protection?
• Marketing to buyers vs marketing to real estate licensees
• Lack of highly qualified new inspectors coming into industry
• There is a need to re-think and re-work the sponsorship program
• Add an apprenticeship feature to the fast track program
• Realtors downplaying the severity of the deficiency comments
• General unhelpful interference of real estate licensees in our business
• Realtors who do not know when to ask for termite inspection
• Realtor education about inspector business
• Agent referrals; inspectors marketing reports to agents; agent becomes the customer
• Public awareness of inspector scope, role and limitations
• Licensing exam needs to be reexamined; look at national exam as a potential
• Why are inspectors under TREC vs under DLR
• Improved ethics and rules violations enforcement
• Size and complexity of current standards of practice is a barrier
• Training and education; fast track vs three step process; what we have now is confusing
• Explain the need for, the content of and the process of writing the SOP commentary
• Industry is grossly over regulated since trade association fragmented and lost influence or control; suggest TREC regulate education and licensing; leave enforcement to the courts
• Reports need an expiration date
• Problem getting the key code to access property

Top 3 Issues

1. E/O insurance should not be mandatory; but it should be available by choice

• With mandated E/O, we have to write reports to pacify underwriters
• With a recovery fund, this means two different risk management methods in place
• Need TAR’s help in overturning the E&O requirement, or minimizing it
• Define scope of inspector liability…this will require some legal counsel for rule writing
• Relationships between the many inspector associations need to be solidified
• Need TREC’s help to identify the number of inspectors who have dropped out since E&O

2. Education Issues; all education components need to be reworked to be more effective

• Mandated state exam needs updating; consider reciprocity; state specific national exam?
• ID the requirements for courses to best prepare an inspector to be competent and ethical
• Break out core course and continuing education into two separate issues in legislation
• Do something about online education – it is ineffective as currently offered
• Include an apprenticeship requirement with the “fast track” option
• Rework the sponsoring inspector apprenticeship program to encourage more sponsors

3. Relationships with real estate licensees need to be clarified and strengthened

• Get more MCE courses approved for real estate licensees covering what inspectors do
• Some form of education should be required as to inspector SOP’s and role
• Provide a specimen contract for a homeowner’s warranty to consumer as part of the inspector’s property condition report?

[Nick Gromicko]

Let me know when the next meeting is and I'll come down and make anyone promoting the NHIE beginner's exam look like the dim bulbs that they are.

[John Cahill]

Originally Posted by gromicko

Let me know when the next meeting is and I'll come down and make anyone promoting the NHIE beginner's exam look like the dim bulbs that they are.

The task is to solve the so called Texas testing problem and believe me when I say TAREI, TPREIA, ASHI and 4 others are not gonna buy into NACHI.

On the other hand I don't think there is a testing problem. 25% fail rate is fine by me.

[Nick Gromicko]

You guys in Texas have arguably the best pre-licensing and testing requirements in the inspection industry. If I'm at the next meeting, I'm going to compliment Texas up one side and down the other. And all that free, online, approved continuing education is the best of the best! I wouldn't mess with it all too much if I were you.

[John Cahill]

Originally Posted by gromicko

You guys in Texas have arguably the best pre-licensing and testing requirements in the inspection industry. If I'm at the next meeting, I'm going to compliment Texas up one side and down the other. And all that free, online, approved continuing education is the best of the best! I wouldn't mess with it all too much if I were you.

There seems to be a force getting ready to attack on line courses. You might be the target. Your on line courses are great but they are cutting into competing association revenue. I resigned the summit commitee today. I do not know how to help other than keeping you informed and Boyett does a good job of that.

[Michael R. Boyett]

John is correct...see the 4th bullet under #2 above in post #9.

[Nick Gromicko]

John Cahill writes:

There seems to be a force getting ready to attack on line courses. You might be the target. Your on line courses are great but they are cutting into competing association revenue.

If these other associations in Texas are wondering why InterNACHI has more members than all of them combined, they should try what InterNACHI did and begin offering free TREC-approved courses and free membership benefits and free business success tools. We'd welcome some manly competition. But no.... instead we hear them cry:

Mommy, Mommy, I mean TREC, stop approving all of InterNACHI's free, online and online video courses. Harm inspectors. Harm consumers. We don't care. No one with any brains will pay to join our crappy, little association unless you harm everyone by prohibiting InterNACHI from giving away all their TREC-approved education and membership benefits and business success tools for free. Waaahhh! Ooops, I pooped my diapers Mommy!