Banks require appraisals, not inspections. While the two things seem descriptively similar, they are functionally radically different: an appraisal tells the bank a number that represents the market value of the house (used to determine if the value of home combined with the requested loan amount fits within the maximum loan-to-value ratio the bank is willing to accept—or allowed, for programs with mandatory limits), an inspection identifies specific problems and recommended corrections/mitigations.

> It also failed to mention that home inspections are largely useless

On both homes I've been involved in purchasing from the buyers side, the home inspection has been quite useful (though less critically so in the one that was new construction, though there's no guarantee that that is the case.)