The Florida FAST 2014 Conference is now only 11 days away. Before getting into the nuts and bolts, I wanted to say that I am beyond surprised by the turn out we are anticipating. Currently, we are looking at 43 different Companies and 50+ attendees. Now, by National Association of Mortgage Field Services (NAMFS) standards that is low — I think maybe one sixth of their numbers. To take into consideration, though, that this is the height of the mowing season and to further state that this is on both a shoestring budget with only 25 days lead time, I believe it communicates that there is an ENORMOUS INTEREST.
Although we are going to have a multi topic, multi faceted agenda, the two primary items we hope to accomplish are: Discussion about the seriousness of Compliance; and Networking. These two areas comprise in upwards of ninety percent of all problems facing the Mortgage Field Services Industry today.
I just got off the phone with a Client whom stated they had a HUGE NEED for properly credentialed Contractors throughout the United States. As opposed to the normal clean outs and bathroom detail, they are now involved in a term which is fairly unfamiliar to Contractors: Facility Maintenance. Now, this doesn’t mean maintaining a factory — although it does encompass that area. What we are talking about is the fact that a tremendous amount of the foreclosures we deal with today are owner and tenant occupied. When we look at the fact that outfits like Blackstone Group vis-a-vis Invitation Homes coupled with American Homes 4 Rent are reevaluating how they attend to their tens of thousands of properties they manage, the reality is that they are refining both their providers — I predict that the THR Group is on the way out — and how they bring in Contractors into their Networks.
The NAMFS push of Aspen Grove Solutions was novel for the day-to-day clean outs and inspections. The reality is that the real world is not going to get in bed with them to deal with Facilities Maintenance. AGS will maintain a partial foothold on the Mortgage Field Services Industry through 1Q2015 and will ultimately be dropped as dead weight. Where the focus is today, though, is the ability to directly recruit Contractors whom have the proper credentials. Financial Institutions, Portfolio Holders and Hedge Funds have realized that the ability to make more money on the ground equals far superior results. You cannot do this through a Network of Order Mills.
At Florida FAST 2014 I will be introducing a Platform very similar to Ariba. By 3Q2015 the vast majority of the work order issuance and recruiting will stream through this Platform. Two things that Originators of Work Orders do not want is: To be bound by Contracts; and The ability to reach a National Network not hamstrung by a daisy wheel of National, Regional and Otherwise Unspecified Order Mills. For those skeptics out there I recommend you pour through Foreclosurepedia and find even a single prediction I have been wrong about yet.
Florida FAST 2014 is simply the beginning; The Genesis, of an Open Marketplace. The ability for Contractors to Network on a National Level via a Regional Approach will ultimately ensure the demise of an Archaic Industry Landscape which spawned the problems which we experienced with the Berghorst and Buczek Dynasties — take note to understand that as they and NAMFS have become largely irrelevant in my normal rhetoric. Florida FAST 2014 is not about condemning an inept NAMFS Leadership nor the travesties it has spawned; Florida FAST 2014 is about moving the Contractor workforce into the position of Networking themselves and creating self sufficient administrative processes to ensure Compliance, Lobbying and capitalization upon eventual Open Market dynamics.
The days of dictation to Contractors conditions and standards which staffers at Regional and Otherwise Unspecified Order Mills do not even understand are coming to an end. Those of us whom sit down and get to the brass tacks of creating a work environment of educated Contractors; as we begin to liaise with Code Enforcement Officers and legislators, will be the ones whom eventually negotiate the new mecca of Open Market Capitalism. To reinforce what I mean, let me relate it in layman’s terms,
Today, a Financial Institution issues a work order. This order goes to a National Order Mill. There a minimum of twenty percent is skimmed off the top and then streams out to a Regional Order Mill where an additional twenty percent is skimmed. It is identical for any bid that streams back to the Financial Institution. In the outlying, non metro areas — 34 percent of the United States falls into this area — an Otherwise Unspecified Order Mill steps in.
Let’s talk time, first. You are adding around 72 hours to the front end of any work order when a Financial Institution utilizes an Order Mill if they can even service the area. Folks, we live in a real time world. That is unacceptable.
Money. So, before a Financial Institution even gets work performed, they are paying between 40 and 60 cents on the dollar for administrative overhead. The Consumer Financial Protection Bureau (CFPB) is extremely serious about considering this type of excessive administrative overhead to be synonymous with violating the False Claims Act. Additionally, this means that the Originator of the Work Order is not getting dollar for dollar work on the ground. No one goes to McDonalds and wants one third of a Big Mac.
Licensing and Compliance. Let’s not bullshit around. There is not a single Order Mill out there today whom is capable of performing a postmortem on any Work Order. Altisource is experiencing this along with Safeguard Properties vis-a-vis the CFPB Investigations ongoing right now. Additionally, not a single Order Mill is able to both understand the local codifications in multiple jurisdictions let alone have a direct relationship with those in charge of implementation.
Boots on the Ground Contractors and firms running W2 setups deal with these issues daily. They additionally are participatory citizens in their local communities and have a vested interest in ensuring that the Originator’s properties meet compliance as they live in the communities.
Education. Education, is by in large, bullshit. I don’t care what flavor it is. The reason is that currently this Industry does not have a baseline for statutory language. A winterization in Denver with CPVC piping is different than a winterization in in Terlingua, Texas, with galvanized piping — yes, in rural areas we still have galvanized plumbing. Taking roofing, for example. There is not a SINGLE EDUCATION PROGRAM I have seen that states OSHA requires you to be tied off.
Finally, licensing. In Florida, where the Florida FAST 2014 is meeting, it is A CRIME to perform many of the Work Orders which National, Regional and Otherwise Unspecified Order Mills are rolling out without a Contractor’s License. I have had several discussions with famed Florida attorney Matt Weidner about this. These Order Mills are not reporting to their Clients that they are now making the Originator’s a party to the liability. Those Contractors and Order Mills not willing to follow the rule of law others do will be called on the carpet long term.
The foundation for the creation of a Contractor Based Wiki similar to the Foreclosurepedia REO Wiki will be established. As opposed to requiring thousands of dollars per year in subscription fees, it will be free to those within the Contractor Network System. Additionally, as real time information streams in, it will be added to the wiki. The wiki will additionally have real time information with specificity to everything from Education and Contractor Reviews to Group Purchasing Power for gas and equipment. Ultimately, all roads for an Accreditation Board will lead to the Genesis of Florida FAST 2014. Through Networking, the Contractors will have a Voice in the Industry and become engaged in precisely how the Open Marketplace unfolds.
I am excited to be a part of history in attending Flordia FAST 2014. I just got off the phone an hour ago with a Regional Order Mill whom is a Client. They had asked about whether or not Eric Miller was going to attend. I told them I hoped he wouldn’t. It’s not that I have a problem with NAMFS; NAMFS has its problems and I will continue to cover those issues, I am afraid he would be a distraction. Boots on the Ground (BOTG) Contractors have a tremendous amount in common with their NAMFS Rank and File counterparts. Most NAMFS Rank and File are hard working people whom joined NAMFS in hopes of learning something and networking — they have somewhat come away from that relationship financially tapped and emotionally drained. Miller is welcome; however, I believe that honest dialogue would be hindered by some folks whom are worried about an Executive Director whom has a Speed Dial option to some of the Contractor’s providers. I additionally worry that a blue collar setting might be just as uncomfortable for Miller. This is NOT a suit and tie setting; there is no Pierrer format. Most of us are heading out for Bar-B-Que and a beer after the conference.
I am honored that several NAMFS Rank and File are attending and bringing their knowledge of not only the Industry, but their successful business operations. The biggest common denominator in the reason that the Mortgage Field Services Industry has been an abysmal failure is because Order Mills are not dedicated in creating both an educated and successful work force. As Order Mills, the only priority that they have is squeezing copper out of a penny. This is unwise, in my opinion. When you see some of the previous Florida Order Mills whom flaunted the fact that the profits they made on the backs of Contractors — remember some of the Contractors hadn’t been paid — through pictures of their new yachts and cars, you engender discord. This Conference is about Contractors networking with fellow Contractors and laying the foundations on how to educate themselves about Compliance. The reality is that ten thousand more Safeguard Properties Memos or fifty new Contractor Comics are not helping anyone. We need the sleeves rolled up by those doing the work educating each other and networking with those Firms whom have their interests at heart. There are hungry Firms out there right now willing to poach the talent available and sink the ships of the dinosaurs whom feasted too long. Foreclosurepedia works daily with these Firms whom believe that a change in the status quo is something worth financing.
Foreclosurepedia is authorized to speak with Clients whom wish to remain anonymous at the time of publishing to discuss Recruiting. The reality is that Networking is the cornerstone of Florida FAST 2014. Foreclosurepedia additionally will perform Consulting upon a negotiated basis. These aspects will occur outside the scope of Florida FAST 2014.
In closing, I want to be very clear and concise in the fact that during the Conference Foreclosurepedia’s position is as an Observer. Albeit, I will read some remarks, I am there to report upon the Conference and introduce many of the Contractors to Interested Parties. I believe that the days of negotiations happening at rich cocktail parties are coming to an end. The reality is that when Firms are able to quietly recruit Contractors away from other Firms whom are failing in their contractual obligations — this is how we avoid the Non Compete — we will begin to see the natural trend to an Open Marketplace. Progress will not be stopped; it is no longer the province of a select few. As Labor begins to stretch its proverbial legs and realize that the 60 and 90 day time lengths are both arbitrary and capricious, we will see the stalwart legacy Order Mills going the same way as those whom swore that Digital Media would simply be a fad.
