Fri Dec 8 18:49:17 EST 2023
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MCS Flaunts its Cash at IMN SFR West Conference

A Member of the Foreclosurepedia Nation took a photo of the Mortgage Contracting Services (MCS) pimp mobile out at the IMN SFR West conference earlier this week. MCS owned by Littlejohn & Co. whom also owns GIS Field Services, as we documented through a recent purchase agreement struck by Chestnut Hill Partners, went all out for their attendance. And the deeper OSINT dive of the GMC Hummer EV revealed some very interesting facts including its journey from Deluxe Detailing of Central Ohio as well as its association with a former Ford Models model. The reality, though, is that there is a far more sinister theme afloat. MCS and GIS Field Services is the recipient of tens of millions of dollars in price increases from Fannie Mae, Freddie Mac, and HUD. To date, not a penny has moved to Labor whom were part of the reason for the increased pricing. With wraps, custom interior, and skylights that remove to create the party ride, the money spent is probably north of half a million dollars.

It isn’t simply the fact that MCS is spending Labor’s money like drunken sailors as Littlejohn & Co. profits at the expense of US taxpayers. With an average of only eighteen cents on the dollar going to actual work being performed, even the US government is beginning to ask how much bang they get for the dollar — to use a Department of Defense term. In fact, the Office of Management and Budget (OMB) is now requiring government agencies to provide data on how much actual money is paid to labor on government contracts, as opposed to overhead and profit. This move is aimed at ensuring that taxpayer money is being used efficiently, and that government contractors are not padding their profits by charging excessive overhead fees. Adding fuel to the fire, a growing number of economists and analysts are predicting a recession in the United States in 2024. This comes as the Federal Reserve continues to raise interest rates in an effort to combat inflation, which has been running at its highest level in decades.

According to data from Bloomberg and seen from their image above, consumer products are roughly 20% higher since the end of the COVID-19 pandemic. This sharp increase in prices has put a strain on household budgets, and is beginning to lead to decreased consumer spending. Another worrying sign for the US economy is the subprime auto loan market, which is showing signs of stress. Subprime borrowers are those with credit scores below 620, and they are considered to be at higher risk of defaulting on their loans. The delinquency rate on subprime auto loans has been rising in recent months, and this suggests that more borrowers are struggling to make their payments. If the delinquency rate continues to rise, it could lead to a wave of defaults that could destabilize the financial system.

And while it is bad enough to refuse pay hikes, the decrease in the amounts of pay is an unforgivable sin. The current HUD M&M FSM Awardees, including 24 Asset Management and JGM Property Group, are pushing out pay 30-40% below that which even Guardian Asset Management paid. And both firms are working assiduously to keep those numbers off the record. As many know, 24 Asset Management controls Assero, the firm in which Lee Mertins went south on nearly One Million Dollars owed to Labor. Mertins, a close personal friend and coworker with Eduardo San Roman, are having their dirty deeds not punished, but rewarded by HUD’s Acting Deputy Chief Procurement Officer, Craig Karnes. Karnes, for years, has been well aware of the hundreds of millions of dollars in fraud, waste, and abuse ongoing both upon FHA assets and the M&M contract itself. In fact, a hundreds of millions of dollars whistleblower lawsuit was filed and rapidly deep sixed by and through HUD itself. Obviously, as seen above, spelling and the English language are not requirements of proficiency by HUD.

Nabil El Gadari’s Booking Photo into the Hillsborough County Detention Facility

In closing, if you want to get out of the rat race, worried every morning about who the latest firm is to be screwing Labor or pending bankruptcy, like MSI and their handling of the billing with Labor year after year after year — Yeah, Kellie Chambers and Nabil El Gadari. Chambers, a NAMFS Board member, is no stranger to #Fraudsters. We keep our eyes open for everything including those pesky domestic violence charges and the bill collectors in Tarrant County which should have never been passed by the Aspen Grove background check.

New York City Construction Outlook: Boom Times Ahead

The foreclosure crisis of 2008 left a wave of abandoned and neglected properties in its wake. As these properties are slowly being reclaimed, a unique opportunity arises for the labor currently employed in foreclosure clean up: a potential segue into the booming rehabilitation sector. The New York City construction industry is experiencing a boom, with spending expected to reach $86 billion in 2022, a 19% increase from pre-pandemic levels which the final increases for 2023 are anticipated to be even more robust. This surge is being driven by a number of factors, including:

  • Rising demand for housing: Residential construction is leading the charge, with spending expected to reach $32.5 billion in 2024, up nearly 70% from pre-pandemic levels. This is due in part to a growing population and a strong job market.
  • Government investment: Government spending on infrastructure is also playing a major role. The City of New York, the Metropolitan Transportation Authority (MTA), and the Port Authority of New York and New Jersey are all planning to invest billions of dollars in the coming years.
  • Changes in office space: While office construction may not be what it once was, there is still a demand for modern office space. The city has seen a number of large office buildings completed in recent years, and more are on the horizon. However, there has also been a shift towards smaller office buildings and more mixed-use developments.

Here are some of the key findings from the report:

  • Spending: Construction spending is expected to total $270 billion over the next three years, an increase of $37.8 billion from pre-pandemic levels.
  • Employment: The construction industry is expected to create tens of thousands of new jobs in the coming years. However, due to rising costs, the number of jobs per $1 million in spending has fallen.
  • Floorspace: The total amount of floorspace constructed is expected to reach 118.2 million square feet in 2024, up from 103.3 million square feet in 2019.
  • Residential: Residential construction is expected to be the strongest sector, with spending accounting for 68% of all construction spending in 2022.
  • Non-residential: Non-residential construction is also expected to be strong, with spending increasing by 57% from pre-pandemic levels. This sector includes office space, retail, hotels, and more.
  • Government: Government spending on construction is expected to reach $26.9 billion in 2024, up from $19.7 billion in 2019.

Overall, the outlook for the New York City construction industry is very positive. The city is experiencing a strong economic recovery, and there is a lot of demand for new development. This is good news for workers in the industry, as well as for businesses that rely on construction activity.

From Demolition to Revitalization:

Foreclosure clean up crews are accustomed to dealing with the aftermath of neglect: removing debris, mitigating biohazards, and securing vacant structures. These transferable skills are highly valuable in the rehab sector, where crews tackle similar tasks like:

  • Gutting and demolition: Removing old walls, flooring, and fixtures.
  • Mold remediation: Addressing potential health hazards caused by moisture and neglect.
  • Securing and stabilizing structures: Fixing leaks, boarding windows, and preventing further deterioration.

This existing experience positions foreclosure clean up crews as a ready-made workforce for rehab projects. They possess the necessary know-how and are accustomed to handling challenging situations, making them valuable assets to rehab teams.

Demand Breeds Opportunity:

The demand for rehab labor is skyrocketing. As property values rise and the housing market remains competitive, investors are increasingly turning to neglected properties for potential profit. This trend creates a multitude of job opportunities for rehab crews, with wages steadily climbing to meet the demand.

The Cost-of-Living Connection:

The rise in living costs, particularly since 2021, puts additional pressure on wages. As rehab crews grapple with rising rents, groceries, and transportation costs, their employers are incentivized to offer competitive compensation packages. This translates to higher wages for workers, making the transition from foreclosure clean up to rehab even more attractive.

A Win-Win Scenario:

This potential shift presents a win-win scenario for both workers and the rehab industry. Workers gain access to a stable, well-paying career path, while rehab companies acquire a skilled and experienced workforce, crucial for meeting the growing demand.

Challenges and Considerations:

While the potential is undeniable, some challenges need to be addressed. Foreclosure clean up crews may require additional training to adapt to specific rehab tasks like electrical work or plumbing repairs. Additionally, navigating the licensing and insurance requirements of the rehab industry might pose hurdles.


Despite the challenges, the potential for foreclosure clean up crews to transition into the rehab sector is significant. With the right support and training, these workers can leverage their existing skills and experience to thrive in this booming field. This not only benefits them financially but also contributes to revitalizing communities and meeting the ever-growing demand for quality housing in New York City.

Foreclosurepedia currently works with Servicers and both public and private funds whom are interested in teaming with Labor. The reality is that the 18 cents on the dollar that they are currently realizing from their relationships within the Industry are far too low and Direct-to-Labor relationships improve not only the profit line items, but the timelines themselves. If you are interested in some direct relationships, reach out today for a discussion about Retaining our services.

The Collapse of ServiceLink, LoanCare and the Fidelity National Empire

For over a week now, the entire Fidelity National empire has been under siege. Last Tuesday, Fidelity National Financial, or FNF, a real estate services company that bills itself as the “leading provider of title insurance and escrow services, and North America’s largest title insurance company,” announced that it had experienced a cyberattack. Fidelity is simply the latest in a string of attacks that were predicted by Foreclosurepedia over the past several years. Fact of the matter is that out of the dozens of firms controlled by FNF and the hundreds of billions of dollars in current losses, the only one Labor cares about is ServiceLink. And to quote an old high school friend it has been locked up as tight as a freshman prom date. The reality is that they, along with the rest of their cohorts, have been unable to access their computers, databases, emails, or phones for over a week, now. They are all being held hostage through ransomware originating from the ALPHV hacking group — the Black Cat.

FNF filed an 8K with the Securities and Exchange Commission (SEC) just before Thanksgiving, stating that the hack had impacted “title insurance, escrow and other title-related services, mortgage transaction services, and technology to the real estate and mortgage industries”.

The sad reality is that while these obscenely wealthy firms could honestly care less about what happens as they are insured, the certainly could give a damn about Labor. And as this plays out, it will show that Labor, as well as homeowners, will foot the bill for FNF and their subsidiaries mistakes. For over a week, there has been zero access to ServiceLink — that also means zero pay. And those deadlines will still be applied against Labor, by ServiceLink, even though Labor has had no access to upload work order results. Moreover, though, the Personally Identifiable Information (PII) on both Labor and homeowners is now presumed to have been compromised, as well. And having no money with your identity compromised during the holiday season is certainly two of the best reasons to leave ServiceLink.

Will the Real Richard Hoback Please Stand Up!

I received an email Thursday from a Contractor whom had pushed an issue with ZVN Properties about pay. In pertinent part, it discussed the price increases from Fannie Mae, Freddie Mac, and HUD with an inquiry about when those price hikes were coming for her. And the response was one of the most comedic I had ever heard. She was informed that as opposed to raising pricing, the increase in volume expected soon would far surpass any price hikes. Even in the heyday of peak foreclosures, increased volume has never translated as an increase in profit. It is the dog whistle of Management any time Labor begins to question their place within caste of the Industry. It is an outright lie predicated upon the notion that Labor lacks the ability to understand basic economics and is nothing more that a Walmart greeter whom is thankful for the third world microcredit — pay when paid — system set up by Bryan Lysikowski, ZVN’s co-owner. Lysikowski co owns and co founded ZVN Properties with his extremely flamboyant partner Richard A Hoback. The also own Granite Creek Cabinetry. Both are based out of the same office location in Canal Fulton, Ohio. Hoback is seen in the above-right photo. Without a doubt, it appears that Hoback is simply a co-owner in name, alone, and funnels his money into race cars and competitions.

Richard A Hoback’s claim to fame began with his conquering of the Ohio Mile at a then record setting speed of 202.156 mph in a stock C5 Corvette. Here are a few of the photos which were in the aforementioned article cited,

And while no one should hate the dreams of another, the questioning of how those dreams are financed certainly should be front and center. In the case of ZVN Properties, the problems are mounting when it comes to separating the where the monies flow. In March, Fannie Mae increased the inspection pricing to $30 for interior inspections and $45 for exterior inspections. ZVN Properties is a Fannie Mae Prime Vendor. To date, none of those price increases have flowed downward. In August 2023, Freddie Mac increased the inspection pricing to $30 for interior inspections and $45 for exterior inspections. ZVN Properties performs Freddie Mac work and to date, none of those price increases have flowed downward. And only several weeks ago, HUD increased the inspection pricing to $30 for interior inspections and $45 for exterior inspections. ZVN Properties performs FHA – HUD work and to date, none of those price increases have flowed downward.

When you look at ZVN Properties payroll during 2020 – 2021 of $2,692,320, it truly defines how bad it is for Labor. Before a single penny is paid to Labor, TWO MILLION SIX HUNDRED AND NINETY TWO THOUSAND THREE HUNDRED AND TWENTY DOLLARS must be put into the pockets of only 55 people. This does not even include rent, utilities, software, or the multiple junkets that Lysikowski and his specially picked friends attend, each year.

ZVN Properties’ refusal to abide by their own trade association’s guidance by the National Association of Mortgage Field Services (NAMFS), to pass through some of that increased profit, is simply par for the course. Deanna Alfredo, ZVN’s Vice President of SFR Services, the former President of NAMFS and current dynamo behind the $10,000+ per attendance tour with NAMFS and the NADP has made it clear that Labor does not matter. Below is the pertinent part of the commitment document that NAMFS sent out to their Membership,

We are willing to confirm this commitment by agreeing to share all allowable increases equitably and fairly with those directly providing mortgage field services on our behalf. — NAMFS Industry Pledge

According to the Centers for Disease Control (CDC), the federal COVID-19 PHE declaration ended on May 11, 2023. I want everyone to remember that date as it will be important later. I digress. During COVID, the Paycheck Protection Program (PPP) came forward in 2020 through the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to help certain businesses, self-employed workers, sole proprietors, certain nonprofit organizations, and tribal businesses continue paying their workers. What is important about that Act and PPP itself is the following,

In order to calculate the amount of the PPP loan, the applicant calculates its payroll costs between January 1, 2019, and December 31, 2019. Average monthly payroll costs are calculated by dividing this amount by 12. The PPP loan amount is equal to 2.5 times the average monthly payroll costs.

So, during the period of COVID and through the PPP program, ZVN Properties took several PPP loans. On 06 April 2020, ZVN Properties took a $560,900 loan from The Huntington National Bank which was alleged to have saved 55 jobs. And then on 10 February 2021, ZVN Properties took an additional $495,833 loan from The Huntington National Bank which was alleged to have saved 56 jobs.

The Devil is Always in the Details. First 55 employes saved with $560,900 and then 56 employees saved with $495,833. Why did it cost less to save more employees? In fact, according to Lysikowski and Hoback, it took $65,067 less to save more jobs than they originally swore to, under penalty of perjury.

What is on everyone’s mind is whether or not any of the PPP Loan money was spent propping up the racing career of Hoback. While neither ZVN Properties nor Granite Creek Cabinetry were forthcoming with answers, the question may be moot in light of the accelerated audits and investigations currently underway. The Small Business Administration would neither confirm nor deny that either company was under investigation during a phone call, last week.

To make sure that we were not coming up with our presumption incorrectly, we decided to pull the PPP loans made to Granite Creek Cabinetry, co-owned by both Lysikowski and Hoback. On 28 April 2020, Granite Creek Cabinetry took a $48,485 loan from The Huntington National Bank which was alleged to have saved 5 jobs. And then on 28 January 2021, Granite Creek Cabinetry took a $55,500 loan from The Huntington National Bank which was alleged to have saved 5 jobs. Interestingly, whereas ZVN Properties required more money for less employees, Granite Creek Cabinetry required $6,515 more, to save the same amount of employees.

The devil in the details is the math. It is problematic. And it becomes even more problematic when you begin to track the PPP loan money and the photo spreads of racing with ZVN Properties and Granite Creek Cabinetry, as the sponsors. Where the story takes an incredible turn is that Richard Hoback and Bryan Lysikowski are claiming a minority owned business status by and through he and Lysikowski, both owning ZVN Properties as Asian owned. According to the Hoback Family History, Hoback is an Americanized form of German Hobach, a habitational name from Hohebach near Künzelsau in Baden-Württemberg. Now, if one of the wives — or husbands — are Asian, so be it, but neither are listed as co-owners or founders. Whether or not Lysikowski or Hoback are Asian, I have no idea and no information has been forthcoming, at this time.

In our investigation we found two things that are pertinent: 1) Rick has an expired Realtor license with the State of Ohio, and at the time of publication; and 2) The Asian American Real Estate Association, the quintessential key to Hoback’s Asian status,  that both Hoback and Lysikowski rely upon to keep the minority status depends upon, doesn’t appear to exist. It could be a typo on the ZVN Properties website, though, as he was a member of the Asian Real Estate Association of America (AREAA) back in 2016. In fairness, most Google listings show the words Asian American inserted in the AREAA listings, nationally. Here is what they had to say,


Richard Hoback, with the email, is not actively a member with us. His membership lapsed in 2016.

It looks like the organization mentioned is actually AAREA, rather than our organization, AREAA. They are a similar organization, unfortunately I cannot locate a website for them. Hope this helps!

Regards, [Redacted], National Chapter & Membership Coordinator || AREAA Foundation Liaison

Fudging details is nothing new; however, when you hold direct Prime Vendor status with say Fannie Mae or other government sponsored entities and you are making claims which are not true — like Minority status without the proper documentation and affiliations — it could be criminal. In the instant case, the information on ZVN Properties has been an outright lie for over seven years.

This isn’t so much about yet another NAMFS member regaling in the sun spending Labor’s money like a drunken sailor. There are some serious questions that present here and whether or not ZVN Properties wants to admit it, those PPP Loans were made to Lysikowski and Hoback by and through US Taxpayer money. In fact, SBA OIG has investigated over 1,000 cases since March 2020. We have about 570 open investigations, and as of May 2023, our oversight and investigative work related to COVID-19 EIDLs and PPP loans has resulted in 1,011 indictments, 803 arrests, and 529 convictions.

In full disclosure, we reached out to Lysikowski, at ZVN Properties, for comment and none was forthcoming before we went to print. As Labor has been leaving in the droves from ZVN and rehabs have all but ended, the reality is that it probably doesn’t matter, anyway.

The Unfolding Antitrust Battle Shaking the Real Estate Industry

In the intricate world of real estate, a seismic shift is underway, sparked by a series of lawsuits challenging the fundamental practices governing agent commissions and industry regulations. What initially began as a lone lawsuit in 2017 filed by Christopher Moehrl has since ballooned into a multifaceted legal storm, with each case adding its own ripple to the established status quo.

Moehrl's discontent over having to pay the buyer's agent commission set the stage for what was considered the "bombshell lawsuit" against the U.S. real estate . . .

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