Laudan Properties has closed its doors being the first National Association of Mortgage Field Services (NAMFS) member of 2020 to find property preservation not profitable enough to remain in business. Laudan took the extremely questionable step of announcing their closure on Martin Luther King’s birthday and federal holiday, Monday. DS News reported the following,
Brian Potasiewicz, SVP & General Manager of Laudan Properties and LIS, told DS News exclusively, “Laudan Inspection Services has seen considerable growth through 2019. We made the decision to focus on that growth through 2020 by stepping back from preservation and REO work. We’re excited about our new focus and looking forward to a lucrative future for Laudan Inspection Services.”
Of note is that the announcement was made on Martin Luther King Jr day, a federal holiday when virtually everything is closed. Moreover, though, what is absent from Potasiewicz’s comments is whether or not Labor will be paid for their services rendered. It is always Labor, upon whose backs the enormous profits are made, to be the last informed. Fuck Laudan for real! Not even a word of thanks to any of the Minority Females or Members of Labor whom made he and his family filthy rich and equipped them with the golden parachutes they bailed out with while Labor stood holding the bag of shit!
Foreclosurepedia had noted, back in September, 2019, that the separation of Laudan’s preservation and inspection services did not bode well for their continued existance. It continues to underscore truly how horrific the State of the Industry is. And it continues to drive home the point that Order Mills contribute little, if any, to the actual foreclosure process other than diluting the amount of money which reaches the Boots on the Ground.
Foreclosurepedia’s groundbreaking predictions, nearly 22 months ago that an inordinate amount of NAMFS members would consolidate or bankrupt out by mid 2020, is ringing true. Even with the culling of the herd, though, the reality that there is not a single firm out there whom is paying anywhere near what it costs to perform quality work. Time and again NAMFS members hire firms whom are not licensed to simply save money which places communities in grave danger.
At the helm of this murky world of unskilled and untrained workers is NAMFS Executive Director, Eric Miller. Miller’s annual salary of OVER ONE HUNDRED AND TWENTY THOUSAND DOLLARS is poised to eclipse nearly EIGHTY PERCENT of all NAMFS member dues. Miller’s salary has been seen as the poster child of the ultimate fleecing of the mortgage field services industry.
Laudan’s departure comes on the heels of Northsight Management‘s loss of it’s Fannie Mae contract. In fact, Northsight joins a continuing list of NAMFS members whom simply cannot produce quality results. All are experiencing yet another revelation, though. Labor has figured out that volume does not make up for shitty pay. The Industry has lost tens of thousands of highly skilled personnel over the past two years since the contraction of distressed assets has begun. In fact, the stalwart chargeback, always deployed to make end of the month quotas, isn’t even capable of staving off the collapse of these Ivory Towers of debt. Whether it be Northsight or other similarly situated firms, Labor has finally given the Big Middle Finger to $10 locks and $15 dollar cubic yard debris removals. And soon, the TWENTY FIVE PERCENT mandatory discounting will be on the chopping block if these firms want to continue in the space.
No one, in their right mind, would agree to the fifty page tomes preservation firms spew out as Master Services Agreements (MSA). Most demand preemptive waivers of liens and ironclad promises that you defend them in court REGARDLESS of whether or not you are liable. Moreover, though, the pricing structure is more akin to working in a Chinese Prison Labor Camp. Even if that did not dissuade you, the guarantee of chargebacks, regardless of whether they are legal and when the Order Mill is the judge and jury ensure bankruptcy.
Adding to the crisis is the simple and salient fact that while financial institutions, government sponsored enterprises (GSE), and US government agencies are paying top dollar for services, the money never reaches the Boots on the Ground. And some of the Clients are beginning to ask why. This, coupled with the fact that the Industry has continued to refuse to support the International Association of Field Service Technicians (IAFST) and their pushing of an educational standard as seen on the IAFST University, demonstrates that NAMFS members are only concerned with disenfranchising Labor while defrauding the American taxpayer.
To date, not a single IAFST Member has brought forward a claim which the IAFST did not ensure their services were compensated for. In fact, this is one of the primary reasons we continue to expand year after year.
Consolidation and bankruptcies are not the solution for change in the Industry. Partnering with Labor — standing behind a bona fide educational infrastructure — is the answer when coupled with fair pay. And firms like Laudan have no one, but themselves, to blame for their collapse. I have seen the obscene profit margins these firms demanded. In a recent bid submitted to the end Client for $57,000, the Order Mill took $30,000 off the top and then AN ADDITIONAL FIFTEEN PERCENT off of the remaining $27,000! That means that both the Order Mill and the Client knew it would take $57,000 to perform the services and yet Labor was only to be paid $20,250. It is the epitome of madness and the cornerstone of NAMFS member greed!
Whether Laudan makes it in the Inspection space, I have no idea. I personally hope they do not! Laudan is another National Field Network in the making. And those people whom decide to work with them do such at their own peril.
If you think it has gotten bad now, make no mistake it is going to get far, far worse. And there is no relief in sight even on the distant horizon. Unless and until Labor decides to take a stand — a meaningful stand in the form of litigation and work stoppages — eventually all that there will be is a W2 model deployed by the recent emerging kings like New Residential. And make no mistake that they are not the only ones with the W2 model in their sights. The last of the Contractors will be those in rural or one off settings. I have never been wrong before and I have it on good authority from several Senior Level personnel that this will be the setting going into 2021.