John Deere and General Motors both believe that while you have paid for your piece of mechanical equipment, whether that be a truck, a mower, or a tractor, you do not own it. In a particularly spectacular display of corporate delusion, John Deere—the world’s largest agricultural machinery maker —told the Copyright Office that farmers don’t own their tractors. Because computer code snakes through the DNA of modern tractors, farmers receive “an implied license for the life of the vehicle to operate the vehicle.” And you know what? The National Association of Mortgage Field Services (NAMFS) has been moving in this direction for years.
Take Patricia E McTaggart, an employee of the foreign national Altisource, whom works in Atlanta, for example. McTaggart has lead the charge, for years now, with respect to discrimination and unjust enrichment against and upon Minority Females and Labor. While Altisource may not originate its work orders to your company, they have the illegal ability to determine whether or not you are going to do the work.
This is most interesting as it deals with several legal theories. First, there is the Doctrine of Privity. Privity generally exists between two, directly related parties. An example would be the relationship between the US Department of Housing and Urban Development (HUD) and the Prime Vendor. In application, this means that while a subcontractor has a legal and binding relationship between they and the Prime Vendor, there is no relationship between the subcontractor and HUD. This becomes extremely important as over the past several years, Altisource has engaged in some extremely deceptive practices. Going all the way back to the days of Heather Berghorst, the former and now disgraced NAMFS Secretary, Altisource has been spinning up firms and ensuring that they are paid, but not auditing the payments to subcontractors in any meaningful sense. And when those subcontractors do not get paid and complain, Altisource has their names added to a Do Not Use list. And while many are saying that it is a company’s right to decide whom they do or do not use; while many within the NAMFS are supportive of this extreme level of discrimination, the reality is that it violates both civil and criminal law.
In essence, Altisource, a NAMFS Member whom was given a personal pass by Eric Miller and the NAMFS Board of Directors for their roll in discrimination and fraud as we will release later today, appears to believe that as their work orders are performed by subcontractors, Altisource is the ultimate judge and jury with respect to payment. Altisource’s actions demonstrate precisely why the Trump Administration has little hope for the outcome of foreign national corporations in the United States.
Whether or not you approve of the Altisource Do Not Use list, the fact of the matter is that the US Government does not. Anytime that a US Citizen is deprived of their civil rights, as Minority Females and Labor have, the amount of regulatory scrutiny increases exponentially. And where financial institutions need to become extremely concerned is that unless and until Altisource separates itself from the List, those portfolios serviced by Altisource and Altisource’s very investors themselves, are subject to some extremely serious liability.
For those of you out there whom believe that liability is a good thing, simply review the charts of Ocwen and Altisource below. Since Altisource began throwing caution to the wind and hitching nearly 92% of their portfolio to Ocwen, Altisource has dropped from $43 a share last week, to $16 a share today. One should also bear in mind that Altisource is going through the Ocwen 2.0 as well. What I mean is that Altisource was at $169 a share in December, 2014, when Ocwen last decided to snub its nose at regulators.
Fraud is never good for anyone. And whether Eric Miller, the Executive Director of the NAMFS wants to admit it or not, the reality is that if he does not step in soon, the fallout from a full scale investigation into Ocwen and Altisource is not going to stop at those doorsteps. The Trump Administration has made no bones about testing the waters for the resurrection of Glass Steagall. Moreover, the Trump Administration is needing to shore up its Rust Belt opinion ratings. With an overt, anti foreign national stance taken by Trump and his Department of Treasury, Altisource may have more to fear than simply Foreclosurepedia itself.