The Saga of the purchase of Asset Management Specialists (AMS) by Mortgage Contracting Services (MCS) is as long and distinguished as the witness list of Kenneth Starr during the Clinton era investigations. Caroline Reaves, the CEO of MCS, has a long and sordid past when it comes to the Mortgage Field Services Industry. In fact, Foreclosurepedia wrote about the sale and the problems which abounded during the course of events. In fact, Caroline Reaves, CEO of the monstrosity Mortgage Contracting Services (MCS), Asset Management Specialists(AMS) and Vacant Property Specialists LLC (VPS), CoreLogic, and others, has an extremely serious situation at hand. First, the MCS AMS Subholdings LLC, called the MCS Group or half a dozen other shady names, is out on a limb for a THIRD OF A BILLION DOLLARS which Standard & Poors would appear to predict them eventually defaulting upon even if all things are kosher. AMS had a hiccup; an ENORMOUS HICCUP, in that the US Department of Housing and Urban Development (HUD) appeared to, in 2013 – 2014, have gotten some spine and yanked their HUD Contracts.
Foreclosurepedia was able to confirm that HUD allowed MCS to enter into a Termination for Convenience revolving around statements brought forward in the below email sent to Foreclosurepedia by a Source, just days ago,
Mr. Williams,
Any interest in a definitive proof in the form of a spreadsheet showing all of the properties by HUD case number that AMS, as a prime HUD contractor in fall of 2013, worked on after they were sold to MCS and were serviced by MCS during pre-foreclosure?
Looks like around 1500 properties across the country, with that coming up about $3 Million that AMS illegally billed HUD for – as per their COI section of their contract…let us know and we can provide the case numbers….AMS only reported, and Caroline Reaves insisted it was only 80 properties as her team was scrubbing the data before giving it to AMS to report to HUD.
HUD Sources, speaking on condition of anonymity, had this to say with respect to the above,
[…] I can say that based on the history, HUD was well aware of the situation with MCS. Initially, the property count of conflicted properties submitted by MCS was very low. However, based on our own counts in SFIS, they were leaving many properties out, including properties they had conducted inspections on (arguing that the inspections should not be counted as preconveyance services). Our property estimate was slightly lower than what you’ve provided below, but pretty close. After HUD presented its evidence, and MCS was facing a possible Default scenario, they agreed to negotiate a Termination for Convenience in which they paid restitution to HUD based on the COI. I’m not at liberty to discuss the specific amount of the settlement, but will say that HUD left very little on the table. As part of that settlement, both parties signed a release of claims that prevents either side from seeking additional monetary damages. As a result, the AMS contracts have been closed.
And ironically, after the above statement, that is where HUD invoked an absolute clampdown on communicating with the media. Kimberlee L Satterfield, the new Acting Director of the Southern Command, ordered that all future communications, no matter what they are about, must be handled through the Freedom of Information Act (FOIA) process. Regardless of whether or not Satterfield is profiteering from protecting Mitch Davidson and Purdy Enterprise by allowing they to maintain the Anti Whistleblower provisions in the Purdy Enterprise Subcontractor Agreement or otherwise, Satterfield is a civil servant and responsible for communicating with US Taxpayers. Satterfield has a duty and responsibility to field complaints upon the HUD Management and Marketing (M&M) Contract. And in the coming weeks, Foreclosurepedia is going to explore precisely how she came to her new position.
Many are asking what exactly is going on at HUD. With Craig Karnes promoted out of the day-to-day activities of the M&M Program and a hardline Kimberlee Satterfield replacing him, these are two promotions, with all expenses included, that appear to be intellectually dishonest when it comes to protecting US Taxpayers.
Sources, speaking on condition of anonymity, verified that several folks engaged HUD on their concerns with respect to the documents submitted to HUD by Reaves, and were fired by their companies for coming forward. In fact, it appeared that all HUD wanted to do was clear the name of Caroline Reaves, throw a couple of token dollars in the coffers, and get MCS out of their backyard. Foreclosurepedia is also aware that in addition to the Vinson v AMS – MCS litigation, expected to bring in tens of millions of dollars in jury verdicts, there are a multitude of other lawsuits and investigations into MCS which may very well bring the end to its preservation arm as the Bowerman Decision appears poised to do with respect to Assurant Field Asset Services.
Eric Miller As many have stated, the state laws and guidelines must be followed. That said, it also depends on the services that are to be provided as part of the REO. Permits are also often required but overlooked. This is not new as it also occurred when brokers had responsibility to have work completed. The difference in moving to larger entities/contracts is risk mitigation. — From LinkedIn Posting
For years, Eric Miller, the National Association of Mortgage Field Services (NAMFS) Executive Director, has been able to dehumanize Minority Females and Labor. In a time when NAMFS is virtually financially insolvent, Miller continues to receive over $120,240 as annual salary and tens of thousands of dollars in travel and conference attendance compensation. The reality is that we have a tale of two industries. You see, when you look at Miller’s lack of concern for Minority Females and only his Big Five NAMFS Members, the reality is that Miller will say anything to protect his salary as he did and continues to do with respect to MCS.
And it is a brave new world in the Mortgage Field Services Industry. In fact here is how Law360 is reporting on the misclassification of employees as independent contractors by Assurant,
Law360, San Francisco (July 18, 2017, 8:39 PM EDT) — A California federal jury Monday awarded 11 Field Asset Services workers more than $2 million in total damages in the first of multiple class action trials that will determine how much the property servicing company must pay 200 workers for misclassifying them as independent contractors.
Monique Olivier of Duckworth Peters Lebowitz Olivier LLP, who represented the workers, told Law360 on Tuesday that she is thrilled with the verdict, under which the 11 workers will receive between $150,000 and $200,000 on average. Olivier said she thinks that amount will serve as a good bellwether for the remaining class members’ upcoming trials over damages.
In fact, several Field Service Technicians took the stand in July against NAMFS Member Assurant Field Asset Services in a California federal class action trial which has already landed jury verdicts amounting to $2.2 Million in the first 11 of over 100 litigants. They testified that Field Asset Services forced them to work 7 days a week under penalty of losing their contracts otherwise. NAMFS Executive Director, Eric Miller, has remained silent with respect to the litigation against his Members. We reached out to the International Association of Field Service Technicians (IAFST) and no comment was forthcoming at the time of publication.
The Tale of Two Industries has a lot to do with how shell companies are spun up and down daily with many of those being NAMFS Members. No one can forget the Altisource debacle which caused the closing of the doors for Heather Berghorst, the now infamous and disgraced former NAMFS Secretary. Altisource stock prices during the Berghorst Regime came in at over $140 per share. Today, Altisource stock prices have been flatlined at around $20 per share, for months.
And Foreclosurepedia is not the only one paying attention to how the Industry and the Real Estate Sector spins up shell companies to move monies around like Micheal Breese did over at HomeStar Property Solutions. HomeStar, a former NAMFS Member praised heavily by Miller and others, ran six different shells out of 7351 Kirkwood Lane, Suite 130, Maple Grove, MN, alone. In fact after losing his ability to legally work — I say legally as he still does it anyway — and having his licensing pulled by the State of Minnesota in a Labor Investigation Foreclosurepedia participated in, he and the infamous Buczeks are still alive and well being provided work by current NAMFS Members. The Minnesota Department of Labor & Industry revoked the residential building contractor license for the HomeStar (Lic# BC632415). The commission also assigned an administrative order: Cease and desist from unlicensed residential building contractor, electrical contractor, and plumbing contractor activity and pay $3,000 monetary penalty also on 9/21/15 license revoked; cease and desist from acting as a residential building contractor; $20,000 monetary penalty. And at the same time, while HomeStar was under investigation and running away from Minnesota, here is how HousingWire praised Breese.
Connecting the dots. You see, while most live inside that giant echo chamber I call NAMFS and only days away from the NAMFS #FraudFest in Orlando, here is how federal investigators are connecting them,
The federal government is again expanding its investigation into whether foreign buyers are using shell companies to buy luxury U.S. real estate to launder money after its investigation found that potentially illicit activity is behind more than 30% of cash purchases from foreign buyers in select markets.
So, precisely how is NAMFS keeping the lights on?! How many of its Membership are even legitimate US Citizens?! If Eric Miller, the NAMFS Executive Director, were to receive his $120,215 annual salary today and their income remains the same, they will be bankrupt. To say that NAMFS is financially insolvent is an understatement. So, for those whom want to preach to doctrine of budgets, how about you justify this! Here are the numbers at a glance:
- NAMFS posted a NEGATIVE $47,283 as revenue for Fiscal Year 2015
- NAMFS earned $493,036 and spent $540,319 — That is $47,283 more than they earned
- NAMFS provided $84,000 in compensation to “…disqualified persons as defined under section 4958(f)(1) and persons described in section 4958(c)(3)(B) by the Internal Revenue Service (IRS).”
- NAMFS Membership Revenue declined by $41,340
- NAMFS Program Service Revenue, their lifeblood, dropped by $71,365
- NAMFS Total Assets dropped another $56,661 — NAMFS Cash On Hand is now $27,403
Eric Miller’s salary now consumes OVER SEVENTY FIVE PERCENT OF ALL NAMFS MEMBER DUES. Now, let’s talk a little bit about how Eric Miller and his Committees, such as the NAMFS Government Relations Committee, are spending what few dollars are left like drunken sailors,
- Legal fees cost NAMFS $3,830 — Gotta wonder what NAMFS needed a lawyer for
- Michael J Busta, NAMFS CPA cost them $6,223 — Yeah, gotta love Busta doing a spin on TurboTax
- Other — no shit, other and you gotta love that term — cost NAMFS $16,500
- Advertising cost NAMFS $33,160 — perhaps advertising to get some new fish in to finance the Ponzi Scheme
- Office Expenses cost NAMFS $3,067 — Ironic as NAMFS refuses to release their physical address and as everyone knows the Aspen Grove Solutions address is simply a 3 bedroom, 2 bathroom home on Zillow.
- Information Technology cost NAMFS $2,287 — Love it especially when NAMFS has been hacked 3 times and were incapable of paying their https certificate for nearly three months!
- Hotels For Miller and Unknown Party(s) cost NAMFS $14,835 — Stripper Pole Not Included.
- Travel For Miller and Unknown Party(s) cost NAMFS $7,534 — G5 baby, G5!
The backstory on NAMFS is one of sadness; the story is one of the dying carnival workers whom are hocking everything including the tent itself in hopes that no one will realize that the painted clown is not sad due to the makeup, but due to their insignificance in the modern world today. Dating all the way back to the fateful day when Eric Miller had his initial phone call with me and treated me like his NAMFS Offender Members treat Minorities and Females — the typical white, male, chauvinist two step — his days were numbered.
