The National Association of Mortgage Field Services (NAMFS) has never quite figured out how to make money other than at the expense and upon the backs of Minority Females and Labor. It is a fact that the all white NAMFS Board of Directors refuses to discuss. Fact: NAMFS Members only make money by cutting and padding the bids of Minority Females and Labor. Fact: NAMFS Members only make money when they illegally charge back Minority Females and Labor. Fact: Eric Miller is the NAMFS Executive Director. Miller, whose obscene annual salary of over ONE HUNDRED AND TWENTY THOUSAND DOLLARS and consumes over NINETY PERCENT of all NAMFS Member Dues, is the quintessential example of how far out of touch NAMFS has become.
Over the past several years, the Atlantic Hurricane Season has become both more turbulent as well as extremely costly. And each year, NAMFS members are directly responsible for defrauding tens of millions of dollars from Minority Females and Labor whom are naïve enough to believe that Eric Miller’s Gestapo booted thugs will ever pay them.
The 2017 Hurricane Season was the most expensive in US history. Harvey, Maria, and Irma are all names which will be firmly etched in the minds of US Taxpayers and victims alike and suffered more than $200 billion worth of damage from 17 named storms that year. And while in the past, NAMFS members have monopolized the repair space, 2017 presented the first year of declining work orders and revenue for Eric Miller’s posse of #Fraudsters. As a matter of fact, here are some compelling statistics that go to prove the financial sector has finally begun to break its addiction to NAMFS member fraud,
For years, there has been a belief that Wells Fargo is the be all end all of Mortgage Field Services. Wells is damaged goods. Yesterday, Wells Fargo shut down all operations in three states: Indiana, Michigan, Ohio, and several in Wisconsin when they sold 52 branches to Flagstar Bancorp. In April, they paid a billion dollars, again, to the US government. They paid shareholders yet another $400 million. For the first time in the history of the Federal Reserve Board, Wells Fargo was ordered by the Fed to not grow above its 2017 levels and to rub salt in the wounds, they were ordered to oust four of their Board of Directors. $12 Billion and climbing, in fines, since 2000, explains a lot of why Wells Fargo is painted as the feckless Circus Clown.
As of 2016, non-bank financial institutions originated close to 50 percent of all mortgages and 75 percent of mortgages with explicit government backing. A larger fraction of nonbank originations are insured by the Federal Housing Administration (FHA) or Department of Veterans Affairs (VA), which tend to be more likely to default than other types. Among mortgages in Ginnie Mae pools, the data indicate that mortgages originated by nonbanks are twice as likely as bank-originated mortgages to be two or more months delinquent.
Uber in a Box. This is the term that many of us in the Open Source Community use to define systems which are no longer dependent upon proprietary models of antiquated methodologies and technology. Anyone whom has labored over the Safeguard Properties (SGP) or Mortgage Contracting Services (MCS) software — or the Gods forbid you have been subjected to Eric Miller’s kickback scheme of Aspen Grove Solutions (AGS) — knows precisely the price which is paid in your time attempting to upload work orders. Foreclosurepedia originally worked with the Teams which brought the Enterprise Vendor Management Platform (EVMP) to the Industry and is used today — WITH ZERO DOWNTIME, FULL VIDEO, AND NO PHONE APP REQUIRED! See, the dirty little secret which Eric Miller does not want anyone to know is that there is not a single NAMFS member whom has software which will Plug and Play with HTML 5. They all are on HTML 4 and thus a phone app is required which then, in turn, requires paying yet more money to an Eric Miller benefactor, Property Preservation Wizard — I do not name Pruvan anymore as we have successfully sidelined Paul Palmer and his ghetto Round Rock, TX, crew.
Hit the ground running is what firms require when it comes to disasters. And while NAMFS members continue to scramble to find chumps to clean toilets whom wait 75 days and are then told that they are being charged back instead of paid, the reality is that Minority Females and Labor are stepping away. And when it comes to the need for skilled and licensed personnel, it is well demonstrated that rolling the dice on getting paid has given way to direct contracting between nonbank servicers and trade associations such as the International Association of Field Service Technicians (IAFST).
Disaster repair work comes in to forms. First, there is the pro-active disaster preparation such as preemptively boarding windows and addressing potentially dangerous conditions such as dead trees. Another facet is addressing the post landfall issues such as flooding, mold, and hazardous conditions. Hurricane Harvey, which devastated Houston last August, amongst other coastal areas, is going to be come the norm as opposed to the exception in the coming years. And anyone whom believes that the issue has corrected itself is not a student of history. US News and World Report wrote a piece in January that had this to say,
In July, the month before Harvey came ashore as a Category 4 hurricane and battered the Texas coast and low-lying Houston farther inland, 5.5 percent of the state’s mortgages and 5.7 percent of Houston’s were delinquent. By December, those figures had jumped to 7.2 percent of the state’s mortgages and 10 percent of Houston’s, according to Black Knight, Inc., which provides data and analysis to the mortgage and real estate industries. Of the state’s 91,400 mortgages that were at least 90 days delinquent in December, about 40,000 were directly due to Harvey, the company said.
To give you an idea of how completely out of touch the Mortgage Field Services Industry has become, Marina Walsh, vice president of industry analysis for the Mortgage Bankers Association (MBA) had this to say,
If you see strong loan performance, it’s usually supported by positive employment and good wage outlook, and we have both of those.
The belief that the foreclosures would not come was just about as accurate as the belief by NAMFS that Minority Females and Labor would forever remain beholden to they like a feudal surf. RealtyTrac had this to say about those foreclosures which Marina Walsh thought would never materialize,
In April, the number of properties that received a foreclosure filing in Houston, TX was 24% higher than the previous month [… .]
Even more problematic is the fact that nearly eighty percent of all Hurricane Harvey victims did not have flood insurance. What that means is that when these homes begin their slow, downward spiral onto the foreclosure heap, most, if not all of the assets, will have mold. And for those properties which the financial institutions still have not been able to foreclose upon and are uninhabited, do they really want to run the risk of SGP or MCS sending folks out for eleven cents on the dollar to perform hazard and mold mitigation?
The IAFST has been well aware of the fact that thirty years of entrenched mentality does not do our Clients any good. For two years we sounded the alarm bells with respect to employee misclassification. What was Eric Miller’s response? Here is what the twenty five year old trade association recommended,
[…] NAMFS recommends consulting with your business’ legal representation. There are NAMFS members that have previously amended their business practices in California particularly due to the classification, workers comp, unemployment and other issues. Please contact NAMFS and we will attempt to put parties in contact with each other should you be experiencing any of these issues.
The all white NAMFS Board of Directors pays Eric Miller over ONE HUNDRED AND TWENTY THOUSAND DOLLARS PER YEAR. Miller’s salary now eclipses over NINETY PERCENT of all NAMFS member dues. So, one would think that Miller could begin working towards developing White Papers and liaising with legislative bodies in order to address what is now costing NAMFS members MILLIONS OF DOLLARS in fines levied by the California Employment Development Department (CAEDD). Miller has admittedly not had the time nor inclination to do such, though. Instead, Miller instructs his Membership to figure out the problem on their own. And while NAMFS members may believe that this is how things should be, the IAFST released a White Paper within hours of the Dynamex ruling which Miller refers to,
When it comes to many of the nonbank servicers, Ocwen – Altisource aside, the fact of the matter is that allowing an asset to lie dormant for years simply is not an option. Bloomberg’s Prashant Gopal wrote an article a week or so ago originally titled, Small Time Bankers Make Millions Peddling Mortgages To The Poor. No savings, poor credit, and low income are the norm today — sounding familiar? That’s right. It’s a repeat of the 2008 Housing Crisis. The only problem is that the vast majority of these nonbanks are under capitalized.
Using a line of credit from a major bank, they would offer mortgages essentially to anyone with a pulse. They would then quickly resell them into a market that repackaged them into high-risk securities that were destined for failure, infecting the financial system and requiring a government rescue.
[N]onbanks, more loosely regulated than the JPMorgan Chases of the world, are bigger players today than during the last mortgage bubble, according to a Brookings Institution report. They’re making almost half of new loans, compared with 19 percent in 2007.
Nonbank mortgages make up about 80 percent of the loans for borrowers insured by the U.S. government. The banks have largely abandoned that market because of tighter scrutiny. As before, lenders use lines of credit to fund the loans, which are packaged into securities—in this case, Ginnie Mae bonds, common in mutual funds and pensions. In the subprime debacle, private investors risked losses if borrowers defaulted. Now, as long as lenders follow the rules for writing loans, the government guarantees FHA mortgages.
The problem is that the rules for writing the loans are not being followed as closely as they should be. FHA requires that a down payment be made in order to be eligible — generally 3.5 percent of the home value. This is being sidestepped by programs — government funded if you can believe it — which pay the down payment and others are simply borrowing the money at higher interest rate points. And all the while, as the pundits make their speeches across the Beltway that the US housing market is on solid ground, myself and others are not buying it. Defaults are at nine percent for the first 30 days. Granted, that is not the fourteen percent we saw at the peak of the crisis, when you at that to the middle of the forty percentile level of debt to income (DTI) currently measured out there, we have no doubt that we are officially into the next downturn. When you look at the fact that FHA’s cash reserves below minimum levels required by law, the blue skying of the housing industry is back with a vengeance.
There will always be a need for Prime Vendors — the polite term we use for Order Mills. The reality is that ma and pa companies will never be equipped to handle the day-to-day activities associated with servicing a portfolio.
Working directly with ma and pa is what the nonbanks and hedge fund investors want. So, how is the gap bridged? One solution is Digital Matrix Group (DMG). DMG works directly with investors and institutions to stitch together tenant occupied maintenance, rehab and renovation, as well as bringing nearly one million assets to the table which are not currently listed in the MLS. Investors, whom are not burdened with sixty to seventy cents on the dollar administrative overhead which NAMFS members embed in their billing, have been extremely receptive to the Uber in a Box model DMG represents.
Look, when I am able to go to a central repository and identify assets, obtain personnel whom the US government has vetted, and am able to obtain my broker simultaneously, it’s a no brainer. — Indiana Investor at the $200 million dollar level.
DMG has been providing the technological innovation which the Industry has been unable to. Part of the reason for this the antiquated software within the Mortgage Field Services Industry. Foreclosurepedia has been unable to find a single HTML 5 compliant software base utilized by any NAMFS member. Open source technology is what powers the Next Generation of code base which high level financial transactions function. Terms like blockchain are unknown and the ability to query data in a semantic fashion is impossible. To that point, NAMFS is reluctant to even allow the semblance of competition.
A trade association must further the interests of its entire Membership as opposed to the few. The target everyone has missed has been that which the Clients — financial institutions, government sponsored enterprises (GSE), and investors — have set. Ed Delgado, President and CEO of the Five Star Institute, authored a paper last July on behalf of the National Mortgage Servicing Association (NMSA) which spelled out the shortcomings witnessed, first hand.
The thrust of it is here,
The time for a uniform national standard on the identification and treatment of vacant and abandoned properties is now. Thereafter, expediting the disposition of these vacant and abandoned properties through the default lifecycle is critical to returning these properties to new property owners and homeowners for the benefit of the consumer, communities, servicers, and investors.
Ironically, each of the points that Delgado speaks to are easily accomplished with the massive, open source Enterprise Vendor Management Platform (EVMP). With over 1 million lines of code it allows for module creation at the core as opposed to the patchwork of hacks seen throughout the Industry today.
I wrote the EVMP article in 2015. We were already incorporating streaming video, encrypted point-to-point, as well as a complete suite with accounting, instant messaging, and photographs which measure the pitch, roll, and azimuth; the barometric air pressure, and cell tower triangulation. Remember, the EVMP requires NO PHONE APP! We are light years beyond, now, including blockchain integration and native API integration.
With EVMP, we are talking about a granular permission base. That is key when it comes to compliance without letting a firm’s profits become viewable — key in the auditing arena. It’s search engine is powered by that which Goldman Sachs’ former Co Chief of Technology, Don Duet, sung praises over as an Open Source Evangelist. And the kicker is that it is already being used in the Industry today by Regional Providers for a plethora of services such as tenant occupied maintenance, rehab and flips; as well as with interfaces for the Asset Management and selling component needed by Brokers. Did I forget to mention the $15 million of equity it brings and you own?
The new breed in the Industry are not looking for yet more expenses like the executives hired at MCS as Caroline Reaves so proudly announced — three of them last month all at over six figures. The sad thing is that while Reaves is continuing to fork out millions — all billed back to Minority Females and Labor. Nimble, low overhead, and the ability to source direct is what the power players are looking for today. And in collaboration with firms like Digital Matrix Group and Associations such as the International Association of Field Service Technicians (IAFST), a new Industry is emerging right underneath the nose of the Emperor Whom Wears No Clothes.