Wed Feb 8 21:46:33 EST 2023
Home#OpNAMFSCFPB: A Telegraph For The Recalcitrant Order Mills

CFPB: A Telegraph For The Recalcitrant Order Mills

Altisource, a subsidiary of Ocwen, has been in the cross hairs of the Consumer Financial Protection Bureau (CFPB) for several years now. For those National Association of Mortgage Field Services (NAMFS) Regime Members whom think they will just continue to shaft Contractors, this Article is for you. We are going to drill down on precisely what kind of power Contractors now have to wreak havoc upon an Industry which has, for years, turned a blind eye to fraud and corruption. To kick things off, I want to introduce the disgraced, former NAMFS Regime Secretary Heather Berghorst. Now, Berghorst had an extremely cozy relationship with Altisource. Today, she has filed for Chapter 7 Bankruptcy. To understand the Berghorst – Altisource relationship, one needs to understand that as early as 29 November 2013, Altisource was aware of Berghorst’s fraud. It took, though, until 28 May 2014, for Altisource to stop sending Heather Berghorst both money and work orders. While Altisource alleges that they are not complicit in the fraud Berghorst passed out like Carter’s liver pills, we need to understand the timelines which infer at best a tacit approval and at worst a full blown operation calculated to assist Heather Berghorst in walking away from hundreds upon hundreds of thousands of dollars in debt. Reflecting back; with the knowledge of precisely how CFPB operates today, I believe that Altisource would have made different decisions.

For the entire history of Berghorst, simply Google Berghorst Foreclosurepedia or search our website. I want to deal with the final days leading up to Berghorst’s filing for bankruptcy to lay the groundwork. On 23 June 2014, Heather and Doug Berghorst formally filed bankruptcy in the Eastern District of Michigan’s US Bankruptcy Court — 14-04293-JRH. During this period of time and in fact dating all the way back to 28 November 2013, Altisource was well aware of the fact that Heather Berghorst was receiving pay from Altisource and refusing to pay debts owed to Contractors whom serviced properties on behalf of Altisource and Ocwen. In fact, Altisource knew full well that while they were not sending work to Berghorst Enterprises based upon audits they conducted, they began sending work and payments to Heritage Home Solutions, a non existent company by legal definition, which was owned by Heather Berghorst.

23 June 2014 is an important date to remember and is central to our layout. Now, as you recall, I described the fact that I was in direct contact with an Altisource lawyer  whom was well aware that Heather Berghorst was directly responsible for failing to pay Contractors. The reality is that he ordered the forensic financial audit of Berghorst so there could have been no doubt in his mind that Berghorst was financially insolvent. Adding to this is the fact that he was additionally aware of the fact that even knowing this, Heritage Home Solutions, a non existent subsidiary of Berghorst Enterprises was receiving a tremendous amount of work and pay while still refusing to pay Contractors. The same lawyer was in direct contact with Contractors and possessed their accounting as well. This, in turn was referred to Pat McTaggart, Altisource Manager, Field Vendor Management, Atlanta. As best I am able to understand, McTaggart was responsible for all claims against Berghorst and Buczek Enterprises which was yet another Altisource Vendor collared for fraud.

On 12 June 2014, by direction of Altisource Counsel, a Contractor reached out to McTaggart. Understand, that by now Altisource realized that there was no way in hell anyone was going to be paid. When they stopped, or if they have stopped sending Berghorst money is unknown. What we do know is this: Altisource began what appears to be a well orchestrated campaign resembling stalling tactics to buy Heather and Doug Berghorst time to file bankruptcy.

On Jun 12, 2014, at 12:28 PM, “McTaggart, Patricia E” <> wrote:


Please forward me an excel file with the property addresses related to Altisource.  Please provide description of work, fee charged to Berghorst/Heritage & date completed.  We will reconcile with our records & get back to you.

Thank you,

Pat Mc Taggart| Manager, Field Vendor Management, VMO


P.O. Box 105460 | Atlanta, Georgia  30348-5460
P:  770 612 7007 | Ext 8355 | F:  561 682 8149|

By 24 June 2014, the Contractor knew the fix was in. Still having no word from McTaggart, he reached back out in an attempt to to have McTaggart respond as she was already days late in her promise to respond. Now, remember, Altisource had to have known that Berghorst filed bankruptcy the day before or Altisource would be the single most incompetent financial firm I have ever ran across. I knew they had filed as did several others in the ISTAR Intelligence Community. McTaggart replied,

Hi [Redacted],

I am waiting on additional information.  Should be able to provide you with an answer by Thursday.

Thank you,

Pat Mc Taggart| Manager, Field Vendor Management, VMO


P.O. Box 105460 | Atlanta, Georgia  30348-5460
P:  770 612 7007 | Ext 8355 | F:  561 682 8149|

When the Contractor received a final reply, McTaggart was parsimonious in her dressing him down. Understand, that my opinion is that Altisource acted in collusion with Berghorst to ensure a seamless bankruptcy privately even though they publicly promised the world to Contractors. I base this upon the fact that Altisource has acted identically in the Buczek Enterprises Fraud Fest. McTaggart was in charge of that operation and to date, the Buczek Six whom were selected to be made whole haven’t received enough money to even buy a steak dinner when compared to the amounts owed. The problem with this is that either Altisource CONTINUED to pay both Berghorst and Buczek thus aiding in fraud or Altisource stopped paying Berghorst and Buczek and are now refusing to pay Contractors what they are owed which is the same thing. McTaggart’s reply, FOUR DAYS AFTER the Berghorst Bankruptcy was,

Just followed up this morning [Redacted].  Need to wait on directions here.  Please note we have already paid funds to Heritage/Berghorst.

Thank you,

Pat Mc Taggart| Manager, Field Vendor Management, VMO


P.O. Box 105460 | Atlanta, Georgia  30348-5460
P:  770 612 7007 | Ext 8355 | F:  561 682 8149|

So, now that we completely understand the fact that Altisource could give two shits as to whether or not Contractors are paid, let’s talk a little bit about how the Consumer Financial Protection Bureau (CFPB) may be employed to ensure that these illegal shell games become so costly that Altisource and the rest of the National Association of Mortgage Field Services (NAMFS) Regime avoid fraud like the plague. Law360 has a great piece on precisely how CFPB begins to crawl up their target’s asshole so deep they need a proctologist to sit down for months thereafter. Below, I clipped a few items, but you should really go read the entire article. Jonice Grey Tucker is the author and I thought she did a great job in drilling down on the pertinent issues,

CFPB has relied heavily on the use of civil investigative demands (CIDs) in investigations. CIDs often are used to gather information from the target of an investigation, but also may be issued to third-parties who are in possession of information believed to be relevant to the potential violation being investigated. The authority to issue CIDs resides with the director of the CFPB, the assistant director of the Office of Enforcement, and the deputy assistant directors of the Office of Enforcement. Under Section 1052(c)(1) of the Dodd-Frank Act, the bureau may issue a CID “[w]henever the Bureau has reason to believe that any person may be in possession, custody, or control of any documentary material or tangible things, or may have any information, relevant to a violation.”

Generally, a CID recipient must meet and confer with a bureau investigator within 10 calendar days after receipt of the CID to discuss and attempt to resolve all issues regarding compliance. While the FTC has a similar rule, it rarely held to a hard and fast meeting within this meet and confer deadline. Although the filing of a timely petition stays the time for compliance with the portion of the CID being challenged, the petition and the director’s order in response are made public unless good cause can be shown otherwise when the petition is filed. Thus, the confidential treatment provided to CID materials and investigations generally does not apply to petitions.

Section 1052 of Dodd – Frank is predominately what gives CFPB the legal authority to crash the NAMFS Regime Fraud Fest. Similar to the Federal Trade Act, 15 U.S. Code § 41 et seq., CFPB establishes a non adjudicative framework. In fact, CFPB is allowed to conduct  investigations before instituting judicial or administrative adjudicative proceedings. In my opinion, this environment is ripe for Contractors to capitalize upon. While many within the Republican Establishment refer to this process as a witch hunt, the reality is that it sets Contractors up for a win – win situation in that the Client of the offender pays and pays heavily. Thus, with this mindset, the current NAMFS Regime offenders and repeat offenders not only will potentially loose their Contracts if they refuse to pay, but the Portfolio Holders will have to produce mind boggling amounts of information which, in some cases, could potentially bankrupt both the NAMFS Regime Order Mill and Client.

To understand the millions and millions of dollars which Altisource alone is hemorrhaging, one needs to understand the process. So, tomorrow morning Contractor A decided that NAMFS Regime Order Mill B fucked him — maybe they didn’t pay him or maybe the Vendor Manger just had a shitty attitude. Contractor A files a CFPB Complaint located here. In addition, Contractor A reaches out to Foreclosurepedia to ensure that both CFPB and Foreclosurepedia are on the same page and Foreclosurepedia’s ISTAR Intelligence Database is made available free of charge. As CFPB has a scorched earth mandate to extract the pound of flesh from the corrupt Financial Institutions and as the Mortgage Field Services Industry is the soft underbelly of the Financial Institutions, the CFPB Complaint located here which all Contractors should file, begins it leviathan journey.

Now, allegedly United States v. Morton Salt, 338 U.S. 632 (1950), controls the scope of the CID. Let me explain why Morton Salt Co., albeit consistently applied by most Courts, is immaterial in many ways. Let’s take the Berghorst and Buczek Fraud Fest perpetrated against Contractors while Altisource remained recalcitrant to intervene. If each Contractor filed a Complaint — all the better if they filed separate Complaints on each property, but not necessary — naming Berghorst, Buczek, Altisource and Ocwen, the Hammer of Thor would look trivial by way of comparison of the blow the pen of the CFPB exerts. Here, let me elaborate,

When you have a multitude of injured consumers — yes, a Contractor is a Consumer — filing upon nearly identical issues, CFPB stands up and takes notice. First, in the Berghorst – Buczek – Altisource Fraud Fest, CFPB gets very interested as Ocwen is the end game. Benjamin Lawsky, et al., have a real hard on right now for William Erbey, the Chief Executive Officer (CEO) of Ocwen. So, if I was a federal investigator at CFPB I would figure that Work Orders seem to be the issue. Now, we are not just talking about not being paid by the NAMFS Regime Order Mills, we are talking about Charge Backs and Back Billing as well as these are unconstitutional and illegal actions.

So, I am going to require — remember the 10 calendar day mandate — that you deliver to me each and every Work Order you have in your possession including all correspondence associated thereto. I want the photos, phone logs; I want everything on every Work Order as I believe that there are potentially far more victims than simply those whom filed. At best, you have 30 calendar days to produce them. Period. And G-d forbid you file a Morton Salt Co. Petition challenging CFPB, because now your issue becomes PUBLIC. Take a look here at the current Petitions at CFPB. When shit becomes public, your shareholders get spooked. When they become spooked, the Markets become spooked. When the Markets become spooked, your Credit Rating tanks. Well, you get the point.

On average, we are talking about MILLIONS OF WORK ORDERS and potentially HUNDREDS OF MILLIONS of photos and emails at Altisource alone. Now, remember kids, take someone like National Field Network (NFN) whom falsely advertised to Foreclosurepedia that they were hiring in East Tennessee; their Vendor Recruiter reaffirmed such, and then after obtaining a Credit Report which is spurious, at best, told Foreclosurepedia to fuck off. This, when coupled with renewed complaints by Contractors that they are having trouble getting paid over on Facebook — remember, Buczek Enterprises stated NFN screwed them on well over a million dollars which caused the cascade of non payment to Contractors all of which occurred under the watchful eye of Altisource — is a recipe for disaster.

Mortgage Contracting Services (MCS), has a renewed problem as if Carolyn Reaves wasn’t enough of a distraction when juxtaposed with the Lee Mertins Asset Management Specialists (AMS) (now Assero and Company in my opinion) Royal Fucking of the US Department of Housing and Urban Development (HUD).


Special Announcement – Change to the Current Payment Remittance Cycle

Due to issues with the EFT process, this cycle’s check remittance will be processed via mailed checks. All checks will be mailed to the mailing address on file with Vendor Management. If the address below is incorrect then please contact MCS immediately to update the address.  Address changes submitted after 7/3/2014 by 12:00 p.m. EST will not be updated prior to the check process.

Please contact MCS at vendorcompliance.doc@mcs360.comto update all addresses by 7/3/14 at 12:00 p.m. EST.

So, here we have folks engaged in Interstate Commerce under lawful contract crossing state lines using electronic means with Uniform Commercial Code (UCC) in play and MCS decides to toss caution and liability to the wind and randomly send out checks to address(es) they hope are correct. More on point, less than 24 hours was given in many cases to comply. Now, everyone remembers that I predicted MCS was in a world of shit. The leveraged loans MCS took, I predicated, would result in a rapid, downward spiral into financial insolvency. Now class, do we all remember whom foots the bill for the NAMFS Regime Members Fraud Fest? That’s right: Contractors. Whether or not MCS is to that point yet, I do not know … or I won’t release what I do know yet.

Regulation N, X and Z; 12 U.S.C. §§ 5531 and 5536, is a bad motherfucking cocktail. The powers which are wielded by CFPB are both ominous and incomprehensible. Congress is terrified, rather the Republican Party is terrified, by the sheer magnitude by which CFPB is capable of levying against their crony capitalist pals. When the National Association of Mortgage Field Services (NAMFS) Regime meets, in cabal, to determine which minority or gender they are going to target next, Contractors need to participate in sustained CFPB Complaint filing which may be filed here.

Now, Foreclosurepedia works both sides of the aisle in that we Consult to both Contractor and Client depending upon the need. This allows Foreclosurepedia to be nimble and comprehensive with respect to the needs for the party we advise. Foreclosurepedia feels strongly that both Contractor and Client have laudable issues if they contribute to the removal of fraud within the Industry. I have consulted with firms valued in the hundreds of millions of dollars and sole proprietors whom have negative balances in their checking accounts. Regardless, Foreclosurepedia’s Clients prevail. Feel free to reach out today if you are interested.

Compliance has become a new niche in which Order Mills are being brought kicking and screaming into the real world. Last week, I went to Boston to conduct a Due Diligence Investigation upon a potential new Client for Prime Vendor. Because this new Client would handle multiple states in the Northeast, the Prime Vendor needed third party verification with respect to items such as financial solvency, technology, human resource management, etc. Interestingly, both the Client and Prime Vendor are Members of the National Association of Mortgage Field Services (NAMFS) and NOT THE NAMFS REGIME. The distinction is made because both Client and Prime Vendor endeavor to perform services ethically and legally compliant.

Among the sweeping powers granted to the CFPB by Dodd-Frank, none are probably more potent than those pertaining to unfair, deceptive, and abusive acts and practices (“UDAAPs”).   Under Sections 1031 and 1036 of the Act (12 U.S.C. §§ 5531 and 5536) the CFPB is authorized to:

“…take any action authorized under subtitle E (Enforcement Powers) to prevent a covered person or service provider from committing or engaging in an unfair, deceptive, or abusive act or practice under Federal law in connection with any transaction with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service.”

The days of cavalierly brushing aside fraud and corruption, after the fact, are gone for those firms whom will prevail over the next 18 months. In some ways Altisource caught the wrong end of the stick in that they did not ask Heather Berghorst to defraud Contractors. Altisource, though, has refused to meaningfully engage any legitimate Contractors anywhere in the United States or its territories which have been proffered to them at their own request. This telegraphs that Altisource seemingly has no interests in changing. I actually reached out to Altisource for comment and they have, to date, declined. More on point, though, what was surprising to me was the statement by the Prime Vendor I spoke of earlier,

Look, you already know far more than any of us with respect to what makes the actuaries nervous. To us, it makes far more sense to hire you to perform due diligence than roll the dice and hope for the best. I know that a lot of my colleagues find you toxic, but that is a selling point to me. If you are making people nervous; I mean, hell, that’s why I called you. You run a tight ship because [Redacted] told me to call you and I never even knew you did work for them.

You see, a Background Check is worthless. Take Heather Berghorst or Adam and Amanda Buczek, for example. None of them were guilty of anything other than being ignorant. Truth be known, they simply were not business men and women. When I go in to evaluate a Firm, I am not looking for the double entry accounting quirks; what I am studying is whether or not the gesticulations of the pertinent personnel are congruent with the psychological profiles they publicly display. I observe operations and war game staff to ensure that both Client and Contractors are Compliant with Industry standards. The reality is that it is far more cost effective to hire a Consultant whose fees write off on taxes than it is to become bogged down with another Berghorst or Buczek.

At the end of the day, the question is not if you can afford to hire Foreclosurepedia. The question is whether you can afford not to hire us.

Donate To Foreclosurepedia

Advertise With Us


For All Your Eviction And Storage Needs NY/NJ



Most Popular