For years, the Mortgage Field Services Industry used to be the crown jewel of the hands on mortgage sector. Altisource’s former CEO, on an earnings call when New Residential purchased Guardian Asset Management back in August of 2020, stated the following, In a normal market, we estimate that for every 1% increase in delinquency rates, the addressable market for our default related services increases by approximately $700 million. Now, to put that into today’s perspective, here is how DS News pegs the single family delinquency rate on 29 June 2023, Nearly 3% of all U.S. Mortgages Delinquent with Idaho, Indiana, Michigan and Utah leading the upward ticks at 0.2% increases, each. My math is a little rusty, but that is about $2.1 Billion floating around.
I digress. As many of you know, I have cautioned about the dangers of institutional vulture capitalists purchasing up — or bankrupting out depending upon their desire — of Industry firms. A simple read of the firestorm sales over the past couple of years will show precisely how bottom of the barrel we have hit.
The fact of the matter is that while the Industry still attempts to function in a vacuum and while the echo chamber of the nearly defunct National Association of Mortgage Field Services (NAMFS) is merely a droning white noise, Labor has moved on. According to NAMFS documents exclusively obtained by Foreclosurepedia, there has been a seventy percent rate of attrition — that is 70,000+ Members of Labor — whom simply said, Fuck this shit! And the age old institutions of fuckery like Aspen Grove Solutions, now rebranded as Shieldhub, has finally gotten its Irish send off that it always deserved. Much like the vomit from a coal miner leaving a quaint Irish pub on a Thursday evening to return home and beat his wife, so to has the vast majority of the Industry turned its back on the bullshit ABC Number Aspen — oops, Shieldhub — demands on behalf of Wells Fargo.
The word on the bricks, though, is what in the hell is going on with HUD? The FSM 3.12 procurement strategy was Unrestricted. The FSM 3.12 solicitation closed on April 19, 2021, and allowed potential offerors to submit competitive proposals. Awards were made on May 31, 2022, and June 14, 2022. The Agency received GAO protests on June 28, 2022. The protests were dismissed on August 01, 2022, as a result of the Agency decision to take corrective action, which was completed February 1, 2023. On February 13, 2023, further protests were filed. And as they say, the Band Played On. And with Guardian Asset Management controlling 14 of the 17 Contract Areas, the reality is that remaining silent doesn’t simply spook Labor, Management within their own ranks are ready to bolt. And you cannot blame them. When C Level staff refuse to even communicate with anyone, the reality is that they have to start looking for more secure opportunities. And with wages soaring through the ceiling in virtually every occupational code, getting screamed at, for minimum wage, just isn’t worth it anymore. It becomes even more concerning in light of the fact that HUD just contracted out $45,025,268.00 for the past 90 days! And that is not a typo as you will read below.
In light of the above and our discussions with HUD personnel, we have raised the Foreclosurepedia VIX to 71.4 which is an all time high. Forty Five Million dollars and still paying $3 inspections with absolutely not a single penny flowing for any of the Fannie Mae bonuses. As I say, the fuckery continues on and on and on!
If you are an Industry Insider and need to know the results of the HUD contract, drop us a line and we will work with you!
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