Ross Gloudeman is a pretty sharp guy. Chief Compliance and and Regulatory Counsel for the former Lender Processing Services (LPS) — now Black Knight Financial LLC — Gloudeman has been around the proverbial block. He first came up on the radar for entry into the Foreclosurepedia ISTAR Database during the Deposition of Christian S. Hymer back in January,2010 (Bain v Metropolitan Mortgage Group, et al., 09-CV-00149-JCC). He was functioning out of the Mendota Heights, Minnesota, LPS office back then.
No one is arguing against Background Checks as they are the part of any regulatory landscape. It is the movement of information and the need to know with respect to the specific type(s) of information that is troubling.
I had the opportunity to speak with Gloudeman this morning with respect to his recent LinkedIn Comments on the Background Checks. Our conversation is immaterial; however, his LinkedIn Comments are sage,
However, I wouldn’t blindly agree to perform these without some definition from the client. For instance, there should be a clear scope to the check and it should be reasonable. A requirement to look back 25 years for misdemeanor charges unrelated to theft or dishonesty is unreasonable. 10 years is probably the standard you will see from most clients.
Additionally, I would think twice about providing the actual personal information of those that are checked. Instead, a certification that all background checks have been complete should be offered. If a client needs proof for audit purposes, try offering examples of completed checks but redact the personal details like account numbers, driver’s license and social if they appear on the form.
Those companies that can show that they have compliance and risk management practices in place comparative to their size gain a valuable competitive edge over their peers in today’s environment. Background checks are just one important tool in that program.
You know, a real novel concept might be to have a Round Table and sit down with the Contractors whom you folks are making all these fiat Demands upon. It boggles the mind; ney, it is ludicrous, that each and every day there is more and more evidence that the Emperor Wears No Clothes.
While the Contractors out there follow blindly like sheeple and cower in fear, Foreclosurepedia has taken the lead once again. We have reached out to the Consumer Financial Protection Bureau (CFPB) in an attempt to begin the process of dialogue.
The reality is that National, Regional and Otherwise Unspecified Order Mills are attempting to implement a system of culling inordinate amounts of personal and financial information by fiat. In contravention to accepted protocols, Order Mills are having a multitude of legal and illegal agents move and store this information in an insecure environment.
Let us not forget about Safeguard Properties (SGP) and Mortgage Contracting Services (MCS) were both documented with respect to the hiring (for want of a better term) of the felons Jason Mathis and Brandon Lambert (SGP here and MCS here). We additionally have the issue of Carol Boyd, Boyd Property Preservation, had MULTIPLE instances of sending bogus checks to Contractors. Most recently, we have actionable intelligence with respect to National Field Network (NFN) and their refusal to pay Millions of Dollars coupled with their insecure submission of Contractor’s W9 Forms.
In all the above referenced cases, each and every one, they were all Members of the National Association of Mortgage Field Services (NAMFS). There is a phrase in Latin: Quis custodiet ipsos custodes? In essence, it means Whom will watch the Watchers? That is the quandary we are in.
There is no longer any doubt in anyone’s mind that there are prolific ethical and potentially legal issues manifesting within NAMFS. The systemic problems reach to the highest echelons of the NAMFS Board of Directors.
When you have a broken Trade Association such as NAMFS feebly attempting to issue guidance, it is much like the fox guarding the hen house. The reality is that because of NAMFS incompetence; because the Mortgage Field Services Industry chose to remain silent when Leadership was needed, we will see an onslaught of regulation.