Our recent foray for linking Industry Professionals with no collateral, unsecured loans is a sign of the times. For years, the ability of firms able to obtain financing has been slim to none. And the reality is that the vast majority of Mortgage Field Services Industry workers do not have the ability to obtain financing for rehab and renovation projects. The reality is that the Industry is moving into new territory. The territory is uncharted waters with respect to institutionally based insurance claims, hedge fund rehab and restoration, as well as repetitive litigation originating from the Dynamex ruling. Low inventory, enormous mountains of debt, and the exiting of hundreds of millions of dollars in the form of company collapses and sales underscores that whether the National Association of Mortgage Field Services (NAMFS) likes it or not, the Mortgage Field Services Industry is on a collision course with both regulation and the real world.
Foreclosurepedia recently received the IRS 990 from NAMFS for FY 2017 and it wasn’t pretty. NAMFS lost another $51,616 for the year. And while that is an exorbitant amount of money, FY 2018 is far worse as it will absorb the mind boggling amount of companies whom sold and thus NAMFS membership which left.
The ongoing litigation against National Management and Preservation Services dba National Field Network (NFN), which originated as an Involuntary Bankruptcy and is now a Chapter 11, demonstrated a turning point when it came to Minority Females and Labor. Shari Nott and Jack Jaffa, co owners of NFN, orchestrated a bloodbath of nearly SEVEN MILLION DOLLARS of fraud perpetrated against innocent victims. And while Walter Cole, owner of the Cole Team, has hijacked the ability of over 200+ victims to be paid, it has grabbed the attention of many within the federal judiciary including the presiding judge whom has allowed Foreclosurepedia leave to Intervene in the bankruptcy,
Good Morning Paul
Please be advised that you must file either a formal motion/application or a complaint to request the relief being sought. Emailing a letter does not preserve any deadline that may apply. The Court does not a have a complaint form. However, a generic form motion package is being forwarded to you with this email.
Courtroom Deputy to Hon. Christine M. Gravelle, U.S.B.J.
U.S. Bankruptcy Court, District of New Jersey
The background on this was the fact that Walter Cole has done everything in his power to keep the depositions of Shari Nott and Jack Jaffa out of the hands of Minority Females and Labor whom are owed money. Walter and his wife Elizabeth are the epitome of evil, in my eyes, when it comes to those within the Industry. Cole, to me, poses more of a clear and present danger to our Industry than NAMFS itself. And Cole’s continued defraudment of both homeowners in the hurricane ravished Mexico Beach, Florida, area, as well as Labor itself is best documented through recent photos provided upon a property where Cole ordered contractors to paint rolled roofing as opposed to properly install the color desired by the homeowner. It wasn’t just that, though, it was the fact that they were improperly renailing material avoiding the every 6 inch standard and sealing vent pipe caps completely under the shingles,
Time and again Management within our Industry attempts to defraud consumers while additionally disenfranchising Minority Females and Labor. Cole’s spurious relationship with Larry Harris, Allied Field Tech LLC, based out of Sheridan, Arkansas, is only seconded by the very NAMFS members whom continue to employ Cole and further his fraud, waste, and abuse perpetrated upon those whom might least afford it.
When we parted ways back in March the contract stated we would be paid in full within 15 days. It took 2.5 months and he still owed me a bit less than 1 thousand. He used excuse after excuse. — Contractor still owed money by Walter and Elizabeth Cole
The International Association of Field Service Technicians (IAFST) is a noble experiment in building a bridge between Labor and Management. To date, the IAFST has been the tip of the spear with respect to engaging Dynamex issues. The totalitarian regimes which Justis Smith, NAMFS President and Rowe Enterprises CEO and Eric Miller, NAMFS Executive Director have presided over are, for all intents and purposes, collapsing. Over the past year alone, we have seen the bankrupted Assurant Field Asset Services sold and completely dismantled. Assurant had $2.2 million in federal jury verdicts handed down in 7 decisions with over one hundred pending. We saw Milan Thompson, owner of ASONS, forced to step down and sell his company. We saw NFN collapse under the weight of their fraud and we are seeing Mortgage Contracting Services (MCS) have their $480 million debt load rated a Junk Bond status by Moody’s. ServiceLink, the former Lender Processing Services (LPS) giant, as well as Altisource are both facing multi-million dollar lawsuits in California federal courts. And we have the State of California itself fining both NAMFS members and non members alike to the tune of tens of millions of dollars.
When the Honorable Ruth Kraft recommended that NAMFS members “Fly Under the Radar” instead of address legal issues with respect to employee misclassification, I was taken aback. Now, I realized that former NAMFS Board Member Kyle Nickles, owner of JK Field Services, brought her forward; however, I would have thought that the law would matter to a judge. Apparently, I was wrong.
While an economic crisis has already begun and will culminate going into FY 2019 Q3, the reality is that our Industry will not benefit from these foreclosed assets as we did in 2008. What I am driving at is that while there will begin to be an inordinate rise in foreclosures this coming year, we are not going to see a large volume increase on the servicing side. Let me explain this in a way that only a trained media professional such as myself is capable of doing,
Fannie Mae has already committed to removing their NAMFS member vanguard on pre foreclosure assets — the first 30 days or less for want of better words. And as Foreclosurepedia predicted the resignation of Fannie Mae President Timothy Mayopoulos, so to are we predicting that the coming year is going to witness an enormous uptick in direct contracting between Portfolio Holders and Labor.
Tea leaves. They are everywhere and read by everyone; reading tea leaves, though, is an art. The US Department of Housing and Urban Development (HUD) recently opened up the most massive Management and Marketing (M&M) Field Service Manager (FSM) contract in the modern era. 48 states are in play along with a handful of US territories. And All The Usual Suspects are lining up at the trough. Cathy J Baker leads the House of Cards unfolding within the M&M today and many are skeptical of her abilities. One of Baker’s first actions was to unilaterally award PK Management active HUD M&M FSM contracts from which Innotion Enterprises and Best Assets had catastrophically collapsed. To that point, Baker chose to allow Al Espinoza, CEO of Innotion Enterprises, to exit and return to bidding even though their scorecards were some of the worst in the history of the HUD M&M program. Baker’s actions of allowing PK Management to absorb multiple HUD contracts, specifically disallowed in the HUD M&M Contract itself, continues to cast a shadow over a program which has always resembled a Pay to Play scheme.
Hedge funds have begun to make large inroads into the Asset space initially attempting to work with NAMFS members. The vast majority of those relationships have collapsed. Realizing that less than twenty five cents of every dollar paid was actually hitting the job site, almost all have begun direct hiring.
Where we are going to see the largest movement of Labor, in the coming fiscal year, will be into both the direct-to-portfolio market as well as direct bidding upon municipal, county, state and federal contracts. What used to be reserved for only the most sophisticated and wealthy of firms now is available to all. In fact, Foreclosurepedia consults to a multitude of small to medium size corporations in the Industry with respect to government contracting. Much of the government contracting moves at levels in which large corporations would actually lose money performing upon. For example, Foreclosurepedia has a Client whom sells blinds to consumers. Here is a contract which was recently awarded,
The contractor shall remove the existing blinds, rods and associated pieces for the identified area at BLDG 2030, Dining Facility. The contractor shall be responsible for collecting the removed material and putting it at a pre-identified location on the base. […] The contractor shall assemble and install new blinds for BLDG 2030, Dining Facility. All required blinds shall be mounted inside the window.
Two large and two small windows paid nearly four thousand dollars. In, out, done. The biggest challenge today, though, is that Labor within our Industry are not proficient enough to both search for and complete real world contracts. Anyone whom states that they are issuing real contracts and bids in our Industry is lying. What Labor does is copy and paste numbers assigned to them from the company requiring nothing more than the letterhead of a third party. And it is to this point that I am amazed, day in and day out, that many of these misclassified employees honestly believe that they are contractors. Take Larry Harris, owner of Allied Field Tech LLC, for example. Harris honestly believed he only needed to buy a business license for a year and never pay for it again! Until Foreclosurepedia reported upon his illegal behavior, Harris simply refused to pay Labor and continued refusing to pay for his business license.
And that is the problem with our Industry. There is zero enforcement of what few laws apply and when there is enforcement, it comes from the intervention of Foreclosurepedia like we saw with respect to Justis Smith, Rowe Enterprises CEO being required to create a safe website with https.
We released the Bulk Opportunities in our latest FireWire publication. Over the next couple of days we will release some in here, as well. With that said, Foreclosurepedia has begun scaling back our Open Door policy in order to ensure that we are not diluting our product to our current Clients. While we will always advocate on behalf of Labor, the reality is that there are only so many hours in a day.