With Margin Calls coming in daily and a near term hiatus on all foreclosures, National Association of Mortgage Field Services (NAMFS) members like Mortgage Contracting Services (MCS) have begun laying off personnel. MCS, which has had hundreds of millions of dollars in debt weighing down their balance sheets since the purchase of Asset Management Specialists (AMS), nearly a decade ago, is indicative of the dangers which are lurking out there for Labor. Here is how the Wall Street Journal put it in January,
Mortgage Contracting Services LLC, a Lewisville, Texas-based company backed by private equity firm American Securities LLC, has seen its revenue decline in recent years and its roughly $435 Million in debt is now trading at distressed levels.
In August, 2019, Moody’s put it this way,
ASP MCS Acquisition Corp.’s Ca CFR remains constrained by ongoing revenue and earnings declines, an unsustainable capital structure, and weak liquidity.
Fact of the matter is MCS has been pulling out all stops in an attempt to put the screws to Minority Females and Labor and with their recent acquisition of M&M Mortgage, the reality is they are hemorrhaging cash. And adding to their problems are their recent demands for Labor to go into harm’s way with absolutely zero additional benefits. This is the epitome of profits before lives. And to be fair, MCS is not the only NAMFS member sacrificing lives for the line item profit margin. Not a single NAMFS member has offered to offset a single penny of expense added for extra protection and performance in extremely high risk areas. Moreover, though, many firms are actually cutting pricing! I want that to sink in, for just a moment. Many NAMFS firms are haggling over the bids submitted in order to increase their profit margins!!!
Virtually every company still operating today is giving pay raises. Not a single one has been mentioned by NAMFS members. Additionally, not a single NAMFS member has taken the time to advise their Vendor Network on how to obtain financial aid.
Here is some reality for the day-to-day workers out there. By 10 April 2020, all Independent Contractors are eligible for the CARES Act, in conjunction with SBA 7(a) loans. And if you are a smaller firm, let me clue you in on what NAMFS members DO NOT want you to know: You are eligible for unemployment. Yup. And that amount will generally be determined by Line 31 on your Schedule C. Take that number, divide by 12 and add $600 per check. That is the number you will be paid to tell NAMFS members to fuck off. That is a fact. We wrote about it here. So, why in the hell would people continue to put themselves and their families at risk of death in order to not be paid?!