As usual, it would appear that Safeguard Properties (SGP) greed has cut their own throat — kinda. Cityside is quietly announcing FNMA award and SGP loss in NY. I place the intel at the ninety second percentile with respect to veracity. It would fit the timelines I predicated for failure of SGP. My algorithms are rarely wrong. The fact of the matter is that SGP follows a predictable pattern: They come in like parasites and strip all of the equity out of a portfolio and then leave the skeleton for others to deal with.
By stripping equity, Foreclosurepedia means that the initials are performed and the allowables are harvested much like an assembly line death camp. It is done with surgical precision and it is not pretty. The bodies, or in this case the assets, are left strewn across the visible horizon.
Cityside may have some difficulty in muddling through anything which they gain if the IEI-Cityside Joint Venture produces on the US Department of Housing and Urban Development (HUD) M&M 3.8 Awards which we hear have had the seal of approval from the Procurement Law Division (PLD). The reasoning is that in a recent Freedom of Information Act (FOIA) Request which Foreclosurepedia submitted to HUD, the following was released,
Now that I know what the motivation is, I think I can better answer your question. I have no objections to the reporting of the violation coming to either myself or the identified CO of record for the contract. The annual certifications will be easy for my staff to pull, as it is a contract requirement. Additionally, HUD’s GTR staff has the ability to verify what subcontractors performed the post conveyance FSM work. If you have specific knowledge/evidence of an FSM subcontractor that has performed both pre and post conveyance services concurrently during any of the existing contracts, we would be able to take action against the prime contractor by withholding payment for any impacted properties. If there also appears to be a false certification, or further investigation is required, we would need to refer to either DOJ or HUD’s OIG.
C.5.1.12.5 Prohibition on Pre-Conveyance Preservation and Protection Work
The Field Service Manager, its affiliated companies or its agents/subcontractors are prohibited from performing pre-conveyance work on FHA Single Family Insured properties. In the event the Field Service Manager, its affiliated companies or its agents/subcontractors performs pre-conveyance work, the fees associated with post-conveyance work are expressly unallowable and will not be paid. The Field Service Manager must obtain written certification on an annual basis from its subcontractors affirming that they have not and/or will not perform pre-conveyance work on FHA Single Family Insured properties.
Foreclosurepedia will release the entirety of the FOIA in a separate posting later today. Foreclosurepedia is also launching a new salvo of Internal Revenue Service (IRS) 13909 Complaints against the National Association of Mortgage Field Services (NAMFS). We are under the impression that Adriana Farelo-Fernandez is no longer Vice President of NAMFS — we cannot confirm because Eric Miller is far too frightened to respond to an email — and that the President, Vice President, Secretary, Treasurer, 2 National Board Members, 2 Regional Board Members, and 1 Associate/Affiliate Representatives are being replaced.
Foreclosurepedia has every intention of agitating the election cycle this year. We will employ both asymmetrical and protracted campaigns both within and without NAMFS to ensure that those NAMFS Rank and File whom have been both ostracised and marginalized will have a voice in NAMFS this year.
We know, as well, that Assero appears to be landing Pennsylvania, West Virginia, Washington DC, Delaware and VA with respect to Fannie Mae Awards. I place this at the ninety eight percentile of veracity. Assero is in the same boat as the IEI-Cityside JV aforementioned. I want to make my point here very clear: If we find a Prime Vendor or Subcontractor skirting the lines, we are going to turn that information over to HUD and we are going to lay stiffly upon their neck to garnish the Prime Vendors.
Ladies and Gentlemen I need not stress the direction we are heading if this goes unchecked. SGP is a gargantuan squid sucking out the equity — allowables, etc. — and leaving the scraps. You folks will have to, at some point, man up and determine where your loyalties lie. Whether or not you are willing to support that which I do is somewhat immaterial as I rarely ask any of you for a dime for the intel I backfeed. If, though, there is going to continue to be a fear of stepping to the plate and capitalize upon intelligence, I fear I have assembled the wrong group of people.
I want to be very clear on what I mean: If this Industry has no stomach for conspiring to achieve that which is just and proper in a legal way, then it is a waste of my time. I am engaged in high treason according to NAMFS. That much we may all agree upon. As the HELOCs roll in, The Hill is going to want some necks to hang the mess upon and that, folks, will undoubtedly become the innocent. As we approach a Hard Market Reset over the next couple weeks and the inevitable uptick in Yellen’s interest rate — the gods bless menopause — it is going to become very grim which means the famine ends for us.
Are you paying attention? Good. If you are not listening carefully, you will miss things. Important things. I will not pause, I will not repeat myself, and you will not interrupt me. You think that because you’re proverbially sitting where you are, and I am sitting where I am, that you are in control of what is about to happen.
You’re mistaken. I am in control, because I know things that you do not know.
What I will need from you now is a commitment. You will listen closely, and you will not judge me until I am finished. If you cannot commit to this, then please bow out. But if you choose to stay, remember you chose to be here. What happens from this moment forward is not my responsibility. It’s yours. Pay attention.
You see, sometimes it is the people who no one imagines anything of who do the things that no one can imagine.
My name is Paul Williams. Pay strict attention to what I say because I choose my words carefully and never repeat myself. I have told you my name, and that’s the who.
The where can most readily be described as the Mortgage Field Services Industry. But there’s a vast difference between being stuck in the Industry and being in the Industry.
The what is easy. Recently, I planned and set in motion events to effect dynamic portfolio shifts and the implementation of a technological infrastructure the likes of which has never been seen. That’s also the when.
As for the why, beyond the obvious financial motivation, it’s exceedingly simple. Because I can. Which leaves us only with the how. And therein, as the Bard would tell us, lies the rub.
If Assero is allowed to stand; if Cityside is not challenged in the HUD pendency, there is going to be nothing but shit in a bag for all parties. Let us not pretend that I do not know whom writes the Contracts in this Industry and precisely where the bodies lie — I know the facts and figures generally before they even hit the keyboard as a binary zero or one because the margins are so tight these days you cannot even get a stick pin through the proverbial asshole of the Firms submitting them. I had the Sealed Qui Tam within minutes of its final preparation and long before the US Attorneys office. That is the US Bank – 5 Brothels $100 Million. I knew about and dealt with the lawyers for those suing your colleagues for W2 vs W9 issues which the Buczeks allowed to come to pass — a good lesson in youthful indiscretion. That is nearing a large case delivery soon on both class action fronts as well. Let me not delve into Berghorst whose endowments seem to have blinded common sense.
If we do not all hang together, we most certainly will hang separately. Remember this: To Know, To Dare and to Keep Silent!
