the bump offset node can only intake the value from one channel. The Bump offset itself is using a heightmap from the red channel and being used to offset all the maps applied to the shader(to unify the effect). You can increase the depth of the parallax effect if you click on the bump offset node and change the height…
Im not good at udk materials but the vertex mask seems to make a mask out of the red channel with what i think is math nodes like divide and such to make a mask for the black to overlay over the specular. And bump offset is using the red channel of the diffuse as a heightmap i think. Someone can probably tell you for sure…