Michael Evangelo. Say it plainly, because he did not say it to the people he owes. He announced the death of National Mortgage Field Services by no-reply email, signed it “Former CEO,” and sent it to the Field Service Technicians and Inspectors who completed the work and have not been paid for it. And while Labor is not paid, Evangelo is living it up on social security payments compensated by Labor through their taxes. And make no mistake, there will be no bankruptcy. He will fade into the night like the rest of his fellow toxic National Association of Mortgage Field Services (NAMFS) pals have.
Foreclosurepedia has written to HUD about what that letter admits and about the pattern behind it. Three firms, the same sequence, and an agency that moves contracts while Labor chases the wreckage. This is the part HUD will not answer. The rest belongs to Evangelo.
Michael Evangelo Wrote The Confession Himself
Read the letter for what it concedes. Evangelo says NMFS closed because it could not pay people. He says the company chose to stop before “even more” Inspectors performed work it would probably not be able to pay for. The word “even” carries the whole case.
It means Inspectors were already working for nothing, and Michael Evangelo knew it. And simply closing the doors does not stop the litigation. He has a very nice home he moved to from Texas to Georgia and that should be the first move any lawyer makes — seize the assets!
He says clients began redirecting payments in January. He says staff and Inspectors were not being paid by February 1. He says he waited until March 28 to act, then spent roughly six more months assigning inspections, recruiting new Inspectors, and promising a rebuild.
Foreclosurepedia has also reported that NMFS announced a change of ownership to its contractors on December 30, 2025, and that Labor kept inspecting and kept getting dispatched into 2026 while the company’s own owner was telling staff the company had zero dollars. These are the scurrilous #Fraudsters that created the pump and dump playbook at NAMFS.
A man who knows the account is empty and keeps dispatching work is not describing a collapse. He is describing a decision. Whether that decision meets a legal standard is for a court. What it did to the people who did the work needs no court to describe.
What Michael Evangelo Counted, And What He Did Not
The letter counts to the dollar what NMFS owes its staff: more than $5,000. It does not state what is owed to Inspectors. By his own account hundreds of them quit or stopped taking work because they were not being paid, and the debt to them remains a number he declined to write down.
A man who can count the staff debt and cannot count the Inspector debt has made a choice about whose losses deserve a figure. And we should note that Scott Nerdin and InspectorADE certainly had no problem posting his message below.
Then comes the appeal for sympathy. Evangelo writes that he took no salary for more than three years, that the purchase price was never paid, and that his family suffered hardship. The letter has a paragraph for his family and a link to job listings for Labor. Foreclosurepedia has not verified the salary claim, and the letter offers no document for it. Would seem extremely hard to live for three years without cash.
Inspectors who fueled their vehicles on the strength of NMFS dispatches have hardship too. Theirs comes with unpaid invoices.
The Letter Counts The Premium, Not The Debt
The letter says the decision became unavoidable when NMFS could not make its next business insurance payment and open inspections had fallen to about 250. It also says the inability to pay Inspectors and staff was “one of the primary reasons” for closing. It does not say whether premiums were paid during the months Inspectors went unpaid, and it does not state what Inspectors are owed. Foreclosurepedia is asking both questions.
One manager was fired for asking when she would be paid. The letter places that in the stretch it ties to Clinton Penny’s control, and says she remains unpaid today.
The Photograph Paragraph
In a letter explaining why he cannot pay Labor, Evangelo found room to write that “in a small number of cases” there were serious documentation problems, and that photographs from earlier inspections “appeared to have been reused on new inspections.” One paragraph later he writes that he is not blaming Inspectors.
The letter names no Inspector, no inspection, and no client complaint. It raises the accusation in the same document that tells Labor there is no money, and it leaves the accusation on the record of a company that cannot answer for its own books.
The Board Seat He Left Out
The letter tells Inspectors that NMFS has not been a member of NAMFS for about three years and that the closing is “unrelated to NAMFS.” The sentence is carefully built. It speaks to NMFS’s membership. It says nothing about the man signing it.
Michael Evangelo appears as a board member on NAMFS’s Form 990 filings for FY2016 and FY2017, and in FY2017 he is listed as a director. He sat in the governing room of the trade association that markets itself to this industry as its standard-bearer. Today he is a former member of nothing.
A man cannot hold a board seat at the association, run a company that collapses on Labor, and then tell Labor the two have nothing to do with each other. NAMFS owes this industry an answer on its own ground: what it knew about NMFS, when it knew it, and whether any member that Labor trusted dispatched work on the strength of that name.
Three Firms, One Pattern, One Agency
Foreclosurepedia told HUD what Labor already knows. When National Field Network collapsed, the agencies scrambled to move the contracts, not to pay the people. When NMFS collapsed, Labor was left chasing the wreckage. 24 Asset Management now owes more than $400,000 to Labor, with no payment and no word from HUD, despite itemized spreadsheets, victim confirmations, and more than a year of notice.
Federal contracting already requires a prime to certify that its subcontractors are paid. HUD has never made payment confirmation to Labor a condition of keeping the work. When an agency has the evidence and does nothing, that is a decision, and Foreclosurepedia told HUD so in writing.
Fuel is climbing. Tariffs are lifting material costs. Inflation is eating the last of the margin. Every unpaid invoice pushes more Field Service Technicians and Inspectors out of this industry for good, and a contractor without a workforce is a logo and a phone number. Alpine Companies can be handed the awards. It cannot be handed Labor’s trust.
Say The Name
Michael Evangelo ran a company for sixteen years under one name. He took Labor’s work for months after he knew the money was gone. He closed it only when the insurance payment came due. He then wrote a letter that told the people he owes to apply elsewhere.
Say his name when an Inspector asks why the invoice never cleared. Say it when a Field Service Technician decides the next unpaid job is not worth the fuel. Say it when the next owner promises that this time it will be different. Michael Evangelo made the word “dispatch” mean something Labor now has to fear, and the people who did the work should not have to carry the debt and the silence.
What This Is, And What It Isn’t
This is the former Chief Executive of a field services company stating in writing that the company could not pay, kept taking Labor’s work, and has no plan to pay now. Will there be a finding of civil and/or criminal fraud? Intent under any wage, contract, or federal statute is a question for a court, and the letter proves knowledge and timing, at minimum. Labor has a much differently toned accusation other than fraud. And I personally do not blame them.
Document every unpaid invoice. Keep every dispatch, every message, and every photograph. File your claims. Foreclosurepedia expects more Inspectors to come forward, and it will report what they say.
NMFS is closed. The invoices are not. The name is Michael Evangelo, and it stays on the record. The Clients paid Evangelo and NMFS, it is time to go after the Clients whom will, in turn, sue Evangelo and NMFS as they did in the NFN Involuntary Bankruptcy!
Date: Tue, Oct 6, 2026 at 9:40 AM
Subject: Important Notice: National Mortgage Field Services Has Ceased Operations
To: [Redacted]
|
To All NMFS Inspectors, This is one of the most difficult messages we have ever had to write. National Mortgage Field Services has ceased operations and is no longer in business. We know that many of you will have questions, and the most important question for inspectors who have completed work is whether you will be paid for outstanding inspections. We do not want to give anyone false hope or leave that question unanswered. NMFS does not have the funds available to pay the outstanding amounts owed to inspectors, and we do not expect that financial situation to change. There is no future payment date that we can give you. There is no reserve of money from which these outstanding inspector payments can be made. In fact, the inability to pay inspectors and staff is one of the primary reasons we made the decision to close rather than continue assigning work when we knew there was a high probability the company would not be able to pay for it. Those of you who completed work and are still owed money deserve an explanation of how we reached this point. National Mortgage Field Services became an LLC in 2010, although our field service operation began several years before that under another company name. Over the years, we worked with many excellent inspectors, employees, clients, mortgage companies, preservation companies, and other organizations throughout the country. Some members of our management team have spent a large part of their working lives with this company. Lori has been with us for approximately 18 years, including the years before NMFS became an LLC, and Melissa has been a manager for approximately 15 years. The event that began the financial decline that NMFS ultimately could not overcome occurred earlier this year. In January, control of NMFS was transferred to Clinton Penny under what was intended to become the sale of the company. As part of that transition, several of our larger clients began directing their payments to him. By February 1, it had become clear to me and our management staff that something was seriously wrong. Our staff members were not being paid. Our inspectors were not being paid. In fact, during that period, virtually nobody who was supposed to be receiving payment for their work was being paid. One of our managers was terminated after raising the question of when she was going to be paid, and she remains unpaid today. We knew by February 1 that we could not allow the situation to continue. However, under the terms of the agreement we had signed, there was a contractual period that prevented us from immediately terminating the transaction. We could not simply declare the agreement void and take the company back. We had to wait until March 28 before we could formally act. When March 28 arrived, we retained an attorney who prepared and delivered a formal letter of rescission terminating the proposed sale. We then took control of NMFS back and began trying to recover what remained of the company. At the time, we believed there was still a possibility that we could repair the damage and rebuild NMFS. What we did not fully understand at the time was that the damage had already been done. For nearly two months, a substantial portion of the revenue normally coming into NMFS from some of our largest clients had not been available to the company while inspectors, staff, and company obligations were going unpaid. For a company such as NMFS, losing that cash flow created a financial hole that became extremely difficult to overcome. Hundreds of inspectors understandably stopped accepting work or resigned because they were not being paid. We do not blame them. They had bills to pay and families to support. But losing that many inspectors also damaged our geographical coverage. Reduced coverage made it more difficult to satisfy existing clients and even more difficult to obtain additional inspection volume. That created a downward spiral that we spent the following months trying to reverse. Some people will understandably ask whether we attempted to recover the money or pursue Clinton Penny legally. The answer is yes. I contacted the appropriate authorities in California seeking action concerning what had occurred. The matter was reviewed, but authorities declined to pursue it. We therefore had no practical means available to us to recover the money that had already been lost. There was another substantial financial loss as well. The agreed purchase price for National Mortgage Field Services was never paid. That caused serious financial hardship to my family personally. For approximately two years before the proposed sale, I had postponed receiving money from the company because we were trying to keep NMFS financially healthy. My family and I expected to recover some of those sacrifices once the company was sold. That money was never received. I personally have not taken a salary from NMFS for more than three years because I wanted as much of the company's available money as possible to go toward keeping the company operating and paying inspectors. After regaining control on March 28, Lori, Melissa, and I spent the following months doing everything we reasonably could to save NMFS. We worked to rebuild our inspector network. We provided clients with updated coverage information. We improved our website and recruiting efforts. We encouraged better communication and more accurate ECD reporting so that we could improve our performance with clients. We explored expanding into property preservation work. We continued trying to obtain additional clients and additional inspection volume. We also spent months attempting to find a financially qualified buyer who could take over NMFS, provide the resources the company needed, retain our clients and inspectors, and allow the company to continue under new ownership. Unfortunately, we were never able to find the right buyer. The mortgage field services industry itself has also changed considerably. A greater percentage of available inspection volume has been moving toward some of the largest national companies, while smaller companies such as NMFS have been competing for a much smaller amount of available work. There were also operational problems we continued trying to correct. Late inspections, failure to provide ECDs, incomplete communication, and, in a small number of cases, serious problems involving inspection documentation made it even more difficult for us to compete for additional work. We recently discovered instances where photographs from previous inspections appeared to have been reused on new inspections. We want to be very clear that we are not blaming our inspectors for the failure of NMFS. The overwhelming majority of the people who worked with us were honest, hardworking inspectors trying to do their jobs and support their families. These problems were additional contributing factors to an already extremely difficult recovery. They were not the root cause of the company's financial collapse. At our previous operating levels, NMFS needed approximately 5,000 open inspections in the system at any given time to generate enough revenue to support inspector payments and the expenses required to operate the company. Recently, we were down to approximately 250 open inspections. A company of this size simply cannot survive at that level. There are substantial expenses involved in keeping an operation such as NMFS running, including business insurance, inspection software, communications systems, telephone services, administration, accounting, staffing, and the many other expenses necessary to receive inspections from clients, assign them, process them, review them, and return the completed work. The revenue coming into NMFS was no longer enough to cover those expenses and pay the people performing the work. Our own staff has now gone weeks without being paid, and NMFS owes staff members more than $5,000. The amount remaining in accounts receivable from our clients is not even enough to cover what NMFS owes its staff, much less what is owed to inspectors. We also reached the point where the company did not have sufficient funds to make its next business insurance payment. At that point, the decision became unavoidable. We could continue accepting and assigning inspections and hope that something changed, or we could stop before even more inspectors performed work that the company would probably not be able to pay for. We chose to stop. We believe it would have been unethical to continue assigning inspections knowing there was a high probability that NMFS would not have the money to pay the people completing them. Our clients have now been notified that NMFS has ceased operations. Inspectors should not perform any additional NMFS inspections. There is another part of the closing process that we want everyone to understand. It is common business practice when a field service company closes for clients to retain unpaid balances for a period of time to protect themselves against possible chargebacks, corrections, claims, or other expenses associated with previously completed work. Depending upon the client and its policies, funds can sometimes be retained for many months and, in some circumstances, as long as a year. Because of that, we are not expecting substantial additional funds to begin arriving simply because NMFS has closed. If any funds are eventually received, they will have to be handled in accordance with the company's remaining legal and financial obligations. The possibility that a client may eventually release money should not be interpreted as a promise that outstanding inspector balances will later be paid. We understand how painful that is to read. If you completed work for NMFS with the expectation that you would be paid, you have every right to be disappointed and angry. We also understand that many of you may look back at what happened and believe NMFS should have closed its operations months ago. We understand that point of view. At the time, however, we genuinely believed there was still a possibility of saving the company. We believed we might find the right buyer with the financial ability to restore NMFS. We believed rebuilding our inspector coverage might result in increased volume from our clients. We believed we might obtain additional clients or expand into other areas of field services. For months, we continued working toward those goals because we hoped NMFS could recover. Ultimately, it did not. Our staff understands the frustration of not being paid because they are experiencing it themselves. Lori, Melissa, and the other people who continued working to keep NMFS operating have gone without being paid as well. They continued working even while their own unpaid balances increased, and they are not expecting to recover all of those losses themselves. The inspectors who are owed money are victims of the same financial collapse that ultimately ended NMFS. We know that saying there is no money does not replace the money you earned. But closing the company does not create funds that the company does not have. We also want to address those inspectors who joined NMFS during the last several months. We continued recruiting inspectors because we were still trying to save the company. We hoped rebuilding our geographical coverage would help us obtain more inspections from existing clients. We hoped to bring on additional clients. We hoped inspection volume would increase. And we continued working to find a financially qualified buyer who could take over NMFS and provide the resources necessary for the company to recover. That is why we continued bringing new inspectors into the company. We did not recruit people because we wanted them to perform work without being paid. We were trying to rebuild a company that we genuinely believed still had a chance to survive. Unfortunately, that recovery did not happen. For clarity, National Mortgage Field Services has not maintained active membership in NAMFS, the National Association of Asset Management & Field Services, for approximately three years. The circumstances surrounding the closing of NMFS are unrelated to NAMFS. This is not the way we wanted National Mortgage Field Services to end. For more than 16 years as National Mortgage Field Services, and for several years before that under our previous company operation, we provided work to inspectors throughout the country. We have had some outstanding clients. We have had an extraordinary staff. And most importantly, we have had thousands of good inspectors over the years who got in their vehicles every day, drove hundreds and sometimes thousands of miles, dealt with weather, dogs, difficult properties, homeowners, deadlines, and all of the other things that come with this business. Many of you have worked with us for years. To those inspectors, thank you for your loyalty and for everything you did for NMFS. To those who joined us more recently, we are deeply sorry that your experience with NMFS ended this way. And to every inspector who completed work and is still owed money, we are sincerely sorry that NMFS does not have the financial resources to pay those outstanding amounts. We know an apology does not replace the money you earned. We wish there were a different answer that we could give you. There is not. Before closing this letter, we also want to provide a resource that may help some of you find work with other mortgage field service companies. The following page provides information and direct application links for companies including FAR Inspections, Direct Connect Field Services, Mortgage Bankers Field Services, and 61 Inspections: https://mortgagefieldservices. |
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