In response to our breaking of the story that several Nationals are refusing to pay debts owed on HUD 3.0 Contracts, HUD has launched an Investigation by and through the HUD Office of the Inspector General. CooperCitiWest, AMSREO, DMC Mortgage and others have all been implicated in this melange of insanity as a direct result of their hiring PPMS South — we all remember our good fellows Brandon Lambert and Jason Mathis!
Sources close to the case stated, “I have initiated an investigation by HUD’s Office of Inspector General, who has the authority to bring criminal charges if the allegations are found to be true. I cannot publicly disclose more information than that at this time, but rest assured, it is being looked into!”
One of the common themes we noted here was that all the Nationals involved in this quagmire of hustle are members of NAMFS. We reached out last week to them for comment, but as yet have heard nothing back. While on the one hand NAMFS has absolutely no authority to instruct its Membership on how to operate their business(es), we did rather think that their Code of Conduct would preempt membership by or at least require removal of those Members whom are recalcitrant with respect to paying Contractors monies owed upon Federal Contracts.
We are populating an interactive map which will allow the general public to view the Properties which have potential for litigation. We feel that while the Prime Vendors (Nationals) appear to have no intention on paying the very Contractors whom made these Properties presentable and safe for purchase, the general public may very well steer clear of these possible money pits by virtue of a Pandora’s Box of litigation.
The Potemkin Village which has been erected by utilization of Order Mills is now crashing down around those whom orchestrated this mess. While there are many Nationals and several Order Mills whom run a tight ship, it is apparent that this Industry has an enormous ways to go now that they have jeopardized the US Government’s ability to sell foreclosures.
As I reported on months ago, I fear the very real specter of government regulation creeping in. Make no mistake that the Dodd-Frank regulations are already forcing some banks themselves to close! Hell, Dodd-Frank is only one-third implemented! Simply the first third of regulations are anticipated to create 24 MILLION MAN HOURS of paperwork! Think I am kidding? Take a read through what the Chairman of the Financial Services Committee on Capital Hill has cited as estimates!
The Dodd-Frank Burden Tracker, the Committee’s online resource to keep track of these regulations, reports that 224 of the more than 400 regulations required by the Dodd-Frank Act have been issued so far. Businesses will have to spend more than 24 million hours each year to comply with the red tape from these first 224 rules. In comparison, it took less time – 20 million hours – for workers to build the Panama Canal.
Folks, I am a very small fish in a VERY large pond! Let me tell you all how this is going to play out, though. Congress, more precisely some schmuck whom is running for reelection and needs a soap box to preach from, is going to lead the charge on regulating this Industry. You know why? The Nationals; those whom have become so greedy as to make JP Morgan blush, have allowed their very own to run unchecked. This is a message, ney this is a pleading to you: For the love of all that is sacred and holy reach out to these idiots whom are creating this nightmare and tell them to pay the tab. The days of the Free Lunch are over! Do you realize what the HUD OIG is going to do?! When they are done with their scathing Report on the State of Affairs they are going to come Head Hunting! Do you really think that Bernanke, et al., are going to come rushing in like Captain Save a Ho and draw a line in the sand?! Hell no!
Time and again common sense has been trampled over in this Industry. This is an opportunity to do the right thing and keep the Regulators out of our Industry. Woe to those whom do not read the writing on the wall for they will be taking the 5th in front of the Subcommittee.
On a final note, we are going to keep the heat up on this one. In the same way we broke the HUD 3.6 story we are going to pull out all the stops; we are slated for an on air interview in February with a Financial Reporter in London. She seems to think that if the credibility of home sales (with respect to HUD properties) could very well be placed in jeopardy and if that happens Overseas Markets could, possibly, react in a negative fashion. Her words were, “If the shadow of another wave of foreclosures are imminent due to you Yanks not having clear title on these flats … Well, it wouldn’t be good.”