So, year over year, we are looking at a 407% increase in lumber prices and not a single penny added for Labor from National Association of Mortgage Field Service (NAMFS) members. To put this into perspective, this is a roughly $36,000 increase in lumber costs alone per new home. Lumber prices seem to set a new record almost daily, now up 67% this year and up 340% from a year ago, according to Random Lengths, a wood products industry tracking firm. And lumber doesn’t just go into framing a house. Those added costs hit cabinets, doors, windows and flooring. And to date, the US Department of Housing and Urban Development (HUD) has yet to address the issue.
Prices of gypsum, which is drywall, are up nearly 7% from a year ago. Steel mill product prices are at a record high, up nearly 18% in March year over year. It’s used for beams, sheet metal products and wiring. The price of copper also set a record high this month and is 27% year to date.
Simultaneously, NAMFS members are telling Labor that they must continue to do more, for less. In fact, NAMFS members are more and more deliberately misclassifying employees. Rarely, if ever, are bids accepted for work and instead, Labor is issued price sheets. Labor Secretary Marty Walsh has made it abundantly clear that the days are numbered with respect to the abuses, to date, by NAMFS members and others of Labor, by and through employee misclassification. The US Department of Labor withdrew a Trump-era rule that would have made it easier for “gig economy” companies like Uber and Lyft to classify their workers as independent contractors. The reversal doesn’t change any gig workers’ current employment status, but it does signal that the Biden administration is taking a less friendly stance toward this sector of the economy.
The Biden Administration is wasting no time repealing Trump-era policies which were calculated to protect NAMFS members, amongst others, with respect to the gig economy. And to be clear, the entire Mortgage Field Services Industry revolves around the gig economy. “By withdrawing the Independent Contractor Rule, we will help preserve essential worker rights and stop the erosion of worker protections that would have occurred had the rule gone into effect,” said Secretary of Labor Marty Walsh in a statement, whom is a former Union official.
Walsh thinks many gig workers should be categorized as employees with health and retirement benefits, a stark reversal from the policies of the Trump administration. “We are looking at it, but in a lot of cases gig workers should be classified as employees,” Walsh told Reuters. “These companies are making profits and revenue and I’m not (going to) begrudge anyone for that, because that’s what we are about in America. But we also want to make sure that success trickles down to the worker.” That trickle down effect has never been seen in the Industry. In fact, over the past 30 years, prices have only continued to fall with respect to payments from NAMFS members to Labor.
Senior officials at the International Association of Field Service Technicians (IAFST) stated that over the past several years, tens of millions of dollars in settlements have been made by firms such Mortgage Contracting Services (MCS), Buczek Enterprises, Assurant Field Asset Services (Assurant) and ServiceLink, amongst others.
The Washington Post is also reporting that the Labor Department also reportedly plans to nominate David Weil, a leading proponent of the push to crack down on worker misclassification who has criticized the business model of gig companies, to lead the Wage and Hour Division again, according to Bloomberg Law. Weil ran that division during the Obama administration. It is not all doom and gloom, though. The IAFST recently discussed their groundbreaking work on certifications and education with Foreclosurepedia. The IAFST University has begun rolling out several basic courses, all under ten dollars, and under their hallmark of Certification In About An Hour. When asked about timelines for going live, the IAFST stated they were looking towards the end of May. Here is how IAFST University puts it on their website,
We cater to the Apprentice, Journeyman and Master Preservationist. The vast majority of Certifications are completed in about an hour. Why waste time and money on what you don’t need?
And while many within the Industry are worried about the CFPB issuing new rules under Regulation X of the Dodd – Frank legislation — as opposed to the CDC moratoria which are continually being ruled unconstitutional in multiple federal courts — which has put a freeze on foreclosures through 2022, the reality is that many are looking to capitalize on the down time by improving their marketability. And Certifications is at the top of their list. Certification benefits both Management and Labor by creating a public withholding that Labor is, indeed, an independent contractor class. This, in turn, provides both liability protection to Management as well as documentable skill sets for Labor to put forward.
We went the extra mile by creating ID cards which are trackable via a tap on the phone. Whether it be law enforcement, neighbors, or community leaders, if you are IAFST University certified, tapping the ID card to any phone will pull up your public facing file. — IAFST University Chancellor
So, while much of the Industry is weathering the storm, it appears that the IAFST is leading the charge with respect to opening doors and ushering in higher pay for Labor.
