On 27 June 1934, the National Housing Act (NHA) created the Federal Housing Administration (FHA), which helps provide mortgage insurance on loans made by FHA-approved lenders. FHA, today, is seated within the US Department of Housing and Urban Development (HUD). Without becoming bogged down in the legislative history of FHA, what is important to understand is how FHA — read HUD — is directly involved in the foreclosure process. FHA underwrites the loan guarantee upon millions of homes in the US today. An FHA mortgage is a way to get a home loan with a minimal down payment and not so sterling credit. In essence, FHA tells a bank, “Look, we will guarantee the note if the homeowner goes into default and will cover expenses related to the foreclosure services.” How does the FHA actually reimburse the financial institutions? Glad you asked. Below is a copy of the FHA 27011 Insurance Form — this is CRITICAL to understand as the entire process is an INSURANCE CLAIM!
The lifecycle of a foreclosed asset is fairly benign. When homeowner misses a payment it triggers a default inspection to determine whether or not the property is abandoned. If it is determined to be abandoned, Field Service Technicians are dispatched to perform an array of services such as lock changes, winterization, lawn maintenance, and debris removal. Generally speaking, when these tasks are completed, the property is known to be in conveyance condition (ICC). With respect to FHA insured assets, when a property is deemed ICC, it is then turned over to the US Department of Housing and Urban Development (HUD) and placed in a post conveyance status wherein it is ultimately serviced under the Management and Marketing (M&M) Field Service Manager (FSM) and eventually sold by the M&M Asset Manager (AM).
Think of the FHA 27011 as a tally sheet. When services are performed, the financial institution whom holds the FHA insured mortgage ultimately is responsible for performing the services to place the property ICC. They submit their claims for expenses upon the FHA 27011 and attest, under penalty of perjury, that the services were rendered and that payments were made to all parties with claims pending against the asset. The financial institution further attests that the title is clear and it is passed on to the Secretary of HUD.
What should be a pretty simple process is oft times frustrated by financial institutions, such as Wells Fargo, having absolutely no control over their process. In fact, in thousands of cases, Wells Fargo could care less whether Minority Females or Labor are paid. Wells Fargo utilizes Order Mills such as Brookstone Management — CAUTION, Google lists their site as Not Secure — to conduct their day-to-day mortgage field services with zero oversight or federally required auditing. And because of the prolific amount of fraud which Brookstone Management is involved in, vis-à-vis their refusal to properly pay funds paid to them by Wells Fargo, our article begins here today.
495 Cedar Creek Drive, Pounding Mill, Virginia, HUD Case Number 541-820113, started its foreclosure journey much like any other asset. There was a 50/50 chance that a National Association of Mortgage Field Services (NAMFS) member would be involved and choose to defraud innocent victims for services rendered. Unfortunately, it happened as it does so many times. A former law enforcement officer and retired US Marshal was hired by Brookstone Management to perform services upon the asset including the purchase and installation of appliances. Now, I am not sure what Eric Miller, NAMFS Executive Director, has been teaching lately at his #FraudFest, but I do know that targeting law enforcement to run a con upon is probably not the wisest thing. Abraham Goodman, the owner of Brookstone Management, could have cared less.
Goodman, like many others, knew that the pre conveyance asset on Cedar Creek Drive was soon to be ICC and enter into the HUD post conveyance inventory. Goodman was banking upon the fact that it would be hard to lien a property once this happened. And normally, as Goodman has done in the past, he would have been able to pocket the money and no one would be able to do anything. Problem was that greed got the better of Goodman and Brookstone Management. What I mean is that in a rare event, thousands of dollars in appliances were purchased and installed by the victim.
Liens are an interesting creature. Generally speaking, most misclassified employees — there are no true contractors in the Industry as millions of dollars in federal settlements have proven — are not sophisticated enough to properly apply a lien. It is somewhat of an art form and timelines and specific language and forms must be utilized. In the instant case, though, the victim reached out to the International Association of Field Service Technicians (IAFST). Accustomed to zealously representing its Membership, the IAFST immediately stepped into action. After debriefing the victim and doing an autopsy upon the asset, the IAFST reached out to senior officials within HUD to discuss the matter. While initially hesitant to engage, HUD finally agreed that the lien applied against their asset needed to be addressed and launched an investigation headed up by the Philadelphia Housing Opportunity Center (HOC), whose jurisdiction the asset was in, as well as by the HUD National Servicing Center (NSC) whom began the process of ordering Wells Fargo to address the lien attached to the property by the victim.
This isn’t a simple one off with respect to Abraham Goodman and Brookstone Management. Just a day before, another IAFST Member filed a lien upon an Alabama asset located at 3362 Dandale Drive, Mobile, Alabama, and located here. Wells Fargo, once again, is the offending party refusing to properly audit payments and abide by the regulatory requirements of the FHA 27011.
Abraham Goodman and Brookstone Management have a pattern and practice of refusing to pay women and Labor in general. As opposed to turning a blind eye as Eric Miller demands, the IAFST works with its Membership and the US Government to hold accountable the #Fraudsters. It is not only the victims losing here, it is the US Taxpayer upon which fraud is being committed!
Abraham Goodman and Brookstone Management are not simply wreaking havoc throughout the filed services portion of the Industry. With respect to the Inspections sector, Foreclosurepedia is tracking hundreds of properties which Brookstone Management has refused to pay the Inspectors actually performing the services. Here is one screenshot showing thousands of properties of which Brookstone Management owes for Inspections,
The dilemma which HUD faces is, ironically, of its own making. For years, lax oversight and failure to properly address the horror show which has become the FHA insured mortgage program, is coming to a head. For years, the far too cozy relationship between the Mortgagee Contract Manager (MCM) and the financial institutions has bordered upon the criminal. Repeated attempts by Foreclosurepedia, IAFST, and numerous victims to address outright fraud were met with silence. In fact, in dozens of referrals to the HUD Office of the Inspector General (OIG), not a single issue was ever addressed even when the whistleblowers were Operations Directors at the offending firms. Files were lost, people were threatened, and at the end of the day HUD did what it has done for years: Protected the criminals. The filing of liens, though, force the hand of HUD.
Abraham Goodman and Brookstone Management must be stopped. In fact, the IAFST will refuse to help any of its Membership whom still work for Brookstone Management after 01 May 2019.
We encourage anyone with pay issues pertaining to Brookstone Management to begin filing liens immediately. Neither Foreclosurepedia nor the IAFST will be willing to assist you if you are not willing to do such. Make no mistake whatsoever, Brookstone Management will be going the same way as their pals over at National Field Network (NFN). The only question is whether or not you will let Abraham Goodman bow out before paying you!
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