With the Election Victory of Donald Trump, as President, one thing which has remained constant is the animosity between conservatives and liberals. And unfortunately, the liberals have grown a pair and forgotten how to manage all of that new testosterone which they have, for years, vilified the Right for allegedly possessing. The National Association of Mortgage Field Services (NAMFS) shares a trait with their conservative and liberal colleagues: Lack of Transparency, Cynicism, and Denial. Wall Street and the financial institutions believe that they are the wielders of fate with respect to Main Street. In essence, there is no one, today, whom has the best interests of Minority Females and Labor at heart. Mob psychology has been outpacing reality for the better part of the past two decades. And for nearly two decades the deafening silence of those whom profit from the work performed by Minority Females and Labor has stood as a testament to the evil which has been perpetrated upon those less fortunate and unable to protect themselves.
The current narrative being dished out is that the chargebacks, which have plagued the Mortgage Field Services Industry for nearly five years now, is due to Minority Females and Labor apparently incapable of performing services. In fact, National Field Representatives (NFR) states that they have no control over the process and have no choice other than to be the Collector on behalf of Wells Fargo. And that same irony is not falling on deaf ears. You see, when a financial institution charges back for services performed, those chargeback payments are required, by law, to be returned to the US Department of Housing and Urban Development (HUD).
For years, NAMFS has perpetrated this belief that everything which they and their Membership does is not their fault. And for years, they have been unquestioned. The question at bar, though, is why NAMFS has failed to have oversight over any of its Membership, even for admitted crimes of fraud, like those committed by their former and now disgraced Secretary, Heather Berghorst. It is a worthy question, as for nearly 20 straight years of unremitting wink and a nod fraud committed against innocent Minority Females and Labor, NAMFS has laid waste to the Industry Landscape. The canary in the financial coal mine has been the NAMFS failure to police its own Membership. Beginning with John Ward and following up through Eric Miller, it leaves no doubt that NAMFS has created a select group of Membership whom can, in fact, do no wrong. And make no mistake that this Cartel of financial terrorists are to be considered armed and dangerous — armed with the ability to wage war against Minority Females and Labor and dangerous in that there are no legal remedies against these too big to fail financial terrorists.
Moreover, since there can’t be two Kings in a Kingdom, HUD is just one of the King’s men under this grotesque underpinning of fraud as you will read later. The NAMFS Cartel, led by Eric Miller under the Miller Regime at NAMFS, is simply put as the classic definition of financial terrorism exerted against and upon targeted Minority Females and Labor. And make no mistake whatsoever, that the all white NAMFS Board of Directors has always been just that, all white!
To properly examine what is going on, we need go no further than look at NAMFS like a Cartel. Wells Fargo, the very same Wells Fargo whom has committed felonies for years, is the Boss. Firms like NFR, Mortgage Contracting Services (MCS) and other National and Regional Order Mills function as consiglieres to the Mafia Boss and the Otherwise Unspecified Order Mills are the underbosses issuing out work orders to the foot soldiers. While even sitting Presidents are not granted documentary immunity, NFR admitted, in writing, that they could not, or would not, produce documents which gave them the authority to systematically loot Minority Females and Labor.
As Foreclosurepedia began to backtrack where Eric Miller drew his power from, we discovered a multitude of Industry players whom would rather not be mentioned. In fact, several have threatened litigation should we reveal any of the several decades of documents we have come into possession of over the years. In fact, NAMFS attempted to sue us to prevent any future writings upon the subject of NAMFS Cartel Members defrauding Minority Females and Labor. Eric Miller, the NAMFS Cartel’s errand boy, is paid very well for his persecution of Minority Females and Labor. Miller’s $120,240 annual salary consumes over SEVENTY FIVE PERCENT of all NAMFS Member dues. Over the past four years of reported IRS filings, they have lost nearly one million dollars if you factor in Miller’s pay-to-play salary. In fact, over the past four years, NAMFS only made $4K and their cash reserves are roughly around $24K according to their latest IRS 990 filing.
As early as 2003, John Ward, founder of the National Association of Mortgage Field Services (NAMFS), knew full well that Minority Females and Labor were not being paid by his NAMFS Cartel Members. In an internal email, obtained exclusively by Foreclosurepedia, Ward summarized a meeting between NAMFS and Richard Dunne of the US Department of Housing and Urban Development (HUD), which occurred on 09 September 2003, in Washington, DC. We confirmed its authenticity by interviewing one of the attendees. In an email dated 16 December 2003 at 06:59 am, Ward summarized the entire HUD Meeting between he, Leslie Bromer, Gail Bradshaw, Jenny Ruth Nix, Ray Washington, Richard Law, John Cahill, Dan Buczek, Joe McCloskey and Kevin Cook. And while most signed off on the Notes which Ward prepared, Dan Buczek did not as we reveal in the Second Part of this Article this week. Buczek lost it in follow up conversations pertaining to the now infamous NAMFS 2003 HUD Memo.
For years, John Ward knew that many within his Cartel were refusing to pay misclassified employees for their work. In fact, John Cahill, of SIRS, was most vocal about it at the 09 September 2003. According to Ward, Cahill stated,
[…] contractors and inspectors were in some cases not being paid a fee for providing the “baseline” inspection information to the primary national contractor who was in turn charging the mortgagee the reimbursable for that information.
Ward goes on to document that Cahill stated,
[Cahill] also disclosed that some primary contractors are denying payment for this and other services by saying that their client, the mortgage servicer, was not paying them.
And here is where the story really takes off. When Cahill demanded that the US Department of Housing and Urban Development (HUD) — Richard E Dunne — force those within the NAMFS Cartel to pay what they owed, Ward and Dunne determined that it was not HUD’s responsibility. Had that been it, well, there would not be much more to write about. Let the Courts handle it. If Minority Females and Labor liked being brutally raped in public by the all white NAMFS Board of Directors, so be it. That, though, is not the end of the story. For the first time in the history of my research, HUD, by and through Richard E Dunne, stated that there was a Doctrine of Privity which did not exist between HUD and Minority Females and Labor. In that same discussion, though, Dunne, in conjunction with Ward and the NAMFS Cartel, stated that the claims for non payment were the responsibility of NAMFS itself.
After some discussion it was generally agreed that HUD’s primary relationship was with the mortgagee or mortgage servicer. The agreements between the mortgage servicer and their primary national contractor and the down stream site providers is not regulated by HUD and is a trading partner issue. HUD cannot force payment to anyone. HUD makes their reimbursable payments to the mortgagee based upon many factors and the mortgage servicer meeting the conditions defined in their contractual obligation. […] What a contractor provides, for how much, and the receipt or non receipt of compensation for delivering those services is a private sector trading partner issue.
I took the liberty of highlighting the term trading partner issue in the above quote from John Ward. The reason for this is that HUD was laying the onus of oversight of payment between NAMFS Cartel Members and the general public squarely upon the Cartel’s shoulders. In fact, it is mentioned again as Cahill states that while HUD is paying the servicers for photos and I gather here that the enormity of photos required today would have been laughable back then,
John Cahill of SIRS stated that on site providers are in many cases being required to provide photos to the primary national contractor and are not being paid for those photos. Again HUD identified that as a trading partner issue. HUD is reimbursing the mortgage servicer according to their agreement.
Richard E Dunne, currently at HUD Headquarters, in Washington, DC, appears to have believed that debris removal only existed to create money for the NAMFS Cartel,
HUD has established that the current system of debris removal provides economies.
Dunne goes on to discuss bids and the requirement for second bids,
The purpose of requiring second estimates is to provide HUD with an accurate and comparative analysis of the services required. This should be an independent and competitive presentation of the best cost to HUD to enable HUD to provide fair and accurate reimbursement for the services provided.
If, in fact, that this is the truth, we need to determine how it is that Five Brothers, one of the first Members of the NAMFS Cartel, determined that they were exempted. Tom Kalas, Five Brothers General Counsel, stated in an internal Five Brothers email on 13 August 2013, that,
The issue was further pressed with respect to the potential for abuse of the bidding process and during that conversation, the Second and Third Bombshells dropped. First, for the first and only time in the history of NAMFS, it becomes known that the NAMFS Cartel demands discounting to perform services. This is in violation of the Copeland Act and we know has been in existence since at least 2003.
NAMFS asked specifically if the contractor providing a bid is being approved and must provide the service or if the amount of the bid to provide the service is being approved. Both Leslie Broemer and Richard Dunne confirmed that the amount to provide the service was being approved. Once the amount is approved the mortgage services is free to assign the job to whomever they wish. At this point NAMFS raised the potential for an approved estimate to be “shopped” around by a national contractor. Once the amount is approved to the national contractor they can then go out and have the site provider rebid the job thus expanding their margins on the approved amount beyond the industry standard discounts. Richard Dunne expressed that he does not believe that this is taking place given the time restraints on completion. Mr Dunne indicated that if that could be done, then it would be considered good business by HUD and no violation or impropriety.
In fact, John Ward and Richard Dunne both knew that this was criminal. Moreover, though, Ward recorded the following,
At this point, Richard Law indicated that his procurement background with the government leads him to believe that is is clearly inappropriate as costs were not being fully or properly disclosed to HUD, the ultimate purchaser.
We reached out to HUD directly, for their opinion with respect to the 2003 NAMFS HUD Notes. HUD had this to say,
It would be difficult for me to even try and speculate intent without knowing the context, payment mechanism or contract type. I can confirm that Richard Dunne is still an employee in HUD HQ Housing. Here is the link to our public locator, if you’d like to try and reach out to him personally: https://peoplesearch.hud.gov/
po/i/netlocator/. I can also tell you that based on the current HUD M&M contracts, that our Cost Reimbursement CLINs do not allow for any markup and are only reimbursed at actual costs. Therefore, to the extent that HUD approved a pass-through expense, any cost savings after the fact would need to be passed on to the Government. However, I am not familiar with the mechanism for reimbursing overallowables to the mortgagees on pre-conveyance properties. That would be a question for HUD’s National Servicing Center. [Redacted] is the current COR on the MCM contract and would likely be familiar with that process.
And it gets even deeper. HUD is extremely clear on how the second bids are to be obtained,
HUD was clear that the second estimate must be independently provided and there can be no involvement, even tangentially, with the provider of the second estimate by the national or the provider of the first estimate.
And yet again, another NAMFS Cartel founder, brought forward not just complaints about not being paid by his fellow Cartel Members, he calls for an auditing of their books and records. Here is what was recorded,
Dan Buczek, representing SIRS, indicated that he thought that primary national contractors were billing for services and not paying the on site providers based on their contention that the national contractor claims they “were not being paid by their client,” the mortgage services. Dan Buczek wants HUD to intercede and make certain that the site providers are paid. A full audit of the national contractors books and records was suggested. HUD indicated that they were not empowered to undertake any such audit and that it appeared that the issue was between trading partners and again not within HUD’s purview.
When Richard Law stated that there was no money to be made in the inspection segment of the Industry, John Ward, in one of the most telling signs of his true character, chastised him,
The Market has already set the pricing. Contractors need to deliver more for the money [… .]
Finally, NAMFS agreed to set up a series of Conference Calls between they and HUD. Foreclosurepedia is filing a Freedom of Information Act (FOIA) request pertaining to these Conference Calls. The law requires that this information be accessible to the American Public as it impacted Public Policy and Legislative Procedure. The 2003 HUD Notes reveals an interesting period of time during which NAMFS was forced to compete in a marketspace legitimately challenged by other competing Associations and Labor, in general. In fact, while Ward was a markedly different man from that which Eric Miller is today, it is apparent that his willingness to give the wink and a nod was just getting under way when you read through Ward’s notes.
The reality is that the scope for financial crime has exponentially increased with the expansion and increased integration of technology and interrelationships within the NAMFS Cartel. The clearly targeted approach of utilizing financial terrorism upon Minority Females and Labor have all changed in both nature and dimension. As we continue to dig into the required NAMFS Cartel discounting programs later this week, we are hopeful that the US Department of Justice takes it as seriously as we do.