While abstractly feeling bad for the folks in both the Hurricane #Harvey and #Irma disaster zones, the reality is that the vast majority of the Foreclosurepedia Nation are eager to get down to both Texas and Florida and leave the Mortgage Field Services Industry behind. The Industry used to be simple. Vertically-integrated National Association of Mortgage Field Services (NAMFS) Order Mills sat in the middle of the system, like spiders spinning a Charlotte’s web out to Minority Females and Labor requesting work: The NAMFS Order Mills decided where and when to issue work orders; they decided how to bridge the distance between honest bid submission and the FHA 27011; they kept a new administrative system in balance through slight of hand and fraud available to a centralized controlling entity. While progressive politicians and US Department of Housing and Urban Development (HUD) officials, like Acting Director Kimberlee Satterfield, try to position themselves as Labor-focused and opposed to fraud, waste, and abuse, the reality is, that all of them are only rephrasing a narrative that destroys human lives while lining the pockets of the all white NAMFS Board of Directors. Clinging to a false hope; a hope that perhaps law enforcement will intervene, Minority Females and Labor are fed a steady diet of price and postponement of payment. The cost of that which Eric Miller, the NAMFS Executive Director, has saddled the Industry with to pay for his greed, may only be counted in terms of the loss of economic independence best exemplified by the recent jury verdicts that NAMFS Members have Misclassified Employees As Independent Contractors. The Foreclosurepedia Nation has changed the power balance between Labor and NAMFS. New Associations such as the International Association of Field Service Technicians (IAFST) have shown Minority Females and Labor that there is profit in diversification away from the Mortgage Field Services Industry. IAFST has begun to move the power balance from central authorities, to where Minority Females and Labor, once again, are beginning to have control. And it is not just about controlling the cost of NAMFS Fraud, it is a reflection of peoples’ desires that they no longer are mistreated and abused. It is a belief that Eric Miller is only human and all humans may be stopped. It is a gathering of forces representing all aspects of the foreclosure workflow, from real estate brokers to processors, whom like the appraisers whom had finally had their fill, are ready to take a stand. All that is needed to move the revolution into the mainstream is a commitment from people like YOU, whom are reading this RIGHT NOW, to be willing to contribute only a few dollars a day to the Cause.
No one will recognize the Industry in less than three years. Technology, real technology and not the garbage Matt Martin is preaching about, is coming. Take Blockchain, for example. Blockchain is a software platform, decentralized in nature, which establishes digital trust between users facilitating transactions of value as well as contracts, over a network. Blockchain enables trust to be distributed throughout a network, without the need for a central intermediary to track, verify and approve the digital exchange of value. The notion of authorizing trust from a central intermediary currently underpins both private and government institutional structures, however this is proving to be costly, slow, and also vulnerable to attack. The blockchain overcomes these issues by operating as a decentralized distributed database, maintaining a continuously growing list of records called blocks. Although Blockchain technology is still evolving, most banks and governments, globally, are beginning to embrace it. Foreclosurepedia has been working over the past several years, in conjunction with National Association of Realtors (NAR) Members to bring forward a prototype and we are close — VERY CLOSE!
It was refreshing to see that the International Association of Field Service Technicians (IAFST) has had a Donation Campaign going on over the past week on their main page. Granted, they are a small outfit, the dollars collected come from the same hard working Minority Females and Labor whom are daily robbed by NAMFS, the fact of the matter is that the IAFST is out there, day in and day out, protecting the Industry.
Never let a stranger on your job site. Never let a stranger in your office, in your house, or in your pocket, unless he is a Friend of Labor. But if he is that friend of labor, he’s the only friend you’ve got! And you’d best listen to that man! If he’s got the scars on his knuckles, if he’s got the muscles in his arms, if he’s been out on that road, like you and me, then he’s the only friend you’ve got! Are you listening? The only friend you’ve got. And you know what? Daily, Foreclosurepedia bucks conventional wisdom in that we do not follow the sheeple to the slaughter at the altar of the NAMFS Echo Chamber. And anything outside of that echo chamber causes anger and panic. The thing is that without your support, Foreclosurepedia cannot continue its Mission.
The single most important thing to the National Association of Mortgage Field Services (NAMFS) is Labor. Without workers, NAMFS is unable to continue their self deluded rationalization of fraud against Minority Females and Labor. And over the past several months, even with foreclosures at their lowest points decades, NAMFS Members have been virtually incapable to meet recruitment quotas. It has become so bad that Altisource recently removed all grass cuts from Birdsey Group and moved them over to an outside firm outside the scope of the Mortgage Field Services Industry.
The Mortgage Field Services Industry is still stuck in a time at the turn of the century when undocumented aliens were plentiful and money flowed from FHA Insured foreclosed properties. In fact, pricing has dropped, within the Industry, consistently, for the past 8 years, while non compensated work loads have dramatically increased. In fact, there is a LinkedIn Thread I opined in where Matt Martin, CEO of Chronos Solutions, actually brags about being able to undercut anyone on the block. I was quick to point out that his price cuts were based, in part, upon destroying the lives of Minority Females and Labor. I even invited he to debate the issue on the Foreclosurepedia Podcast. His fear is as palpable as Eric Miller’s. Neither of they have a pair and neither have worked an honest day in their lives. The praises of technology are preached and while that very well may cut administrative costs, the reality is that there is absolutely no way to cut the costs of the physical work in the field! Whether or not Miller and his all white NAMFS Board of Directors care, is immaterial. What is material is what we are seeing in the real world. Paul Emrath, of the National Association of Home Builders (NAHB), sums it up pretty good,
NAHB reported , in June 2016, extreme shortages of labor and subcontractors, which has increased each year, over the past five years, at least. In fact, the surveys which single family builders participated in showed that these shortages have skyrocketed from a low of 21 percent in 2012, to 46 percent in 2014, 52 percent in 2015, and now 56 percent in 2016. In fact, Emrath goes on to say,
For every one of the 12 trades covered in the 2016 survey (the 12 categories were recommended by the Home Builders Institute), more builders reported a shortage of subcontractors than reported a shortage of labor they employ directly. For example, 78 percent of builders reported a shortage (either serious or some) of rough carpentry subcontractors, compared to 72 percent who reported a shortage of rough carpenters they directly employ; 67 percent reported a shortage of bricklayer/masonry subcontractors, compared to 57 percent for bricklayers and masons the directly employ; and so on. The most common effects of the shortages have been causing builders to pay higher wages/subcontractor bids (reported by 75 percent of builders) forcing them to raise home prices (68 percent) and making it difficult to complete projects on time (58 percent).
Several things to note in Emrath’s discussion. First, the subcontractor impact is greater than that of those employed directly. As many are aware, the recent federal jury verdicts against Assurant Field Asset Services; the $2.2 Million in the first 10 out of over 100+ misclassified employees, shows that the Industry is moving — kicking and screaming — in the direction of having to directly employ their workforce. And the salient fact is that when that case is done, the case against Mortgage Contracting Services (MCS) begins. And when that brings back jury verdicts, the litigation is going to go Nationwide.
And as if it couldn’t get better, Innotion Enterprises, authorized by HUD Acting Director Kimberlee Satterfield, are illegally ordering electrical backfeeding in Illinois, Tennessee, Mississippi, and Alabama. We reached out to Satterfield whom refused to do anything after returning from her week long vacation. Moreover, though, Satterfield has continued to authorize Mitch Davidson and Purdy Enterprise to maintain their Anti Whistleblower provisions in their Subcontractor Agreements. It is truly a sad state of affairs which we will get into on the Foreclosurepedia Podcast this weekend.
The stark reality is that in an Industry which has had an attrition rate off the charts, both Hurricanes #Harvey and #Irma will be a crippling blow upon what little talent which remains. Foreclosurepedia has been working with multiple Contractors putting together their DUNS and SAM Accounts to ensure that they have the ability to work with FEMA and other municipal, county, state and federal agencies. We are looking at $300 Billion in damages, easy. Whom, in their right minds, would hang around to do $25 grass cuts which they wait, interest free, for over 45 days, and then rarely get paid anyway?
In closing, I am asking that the nearly 10,000 strong Foreclosurepedia Nation support the continued Mission of No Contractor Left Behind. Every Sunday, you receive the Foreclosurepedia Newsletter, why not support putting it together? In the alternative, why not simply Unsubscribe!