Sentinel Field Services (SFS) isn’t exactly the name one thinks of when we look at change on the horizon; innovation has never really been one of their catch phrases — until recently. There are, fundamentally, three types of Companies: The first type of Company is on auto pilot. Now, whether the auto pilot is taking it up or down, is immaterial. The second type of Company is a Company immersed in change. Change is a relative term with respect to whether or not it is positive or negative. Finally, you have Companies whom are stagnant. SFS is a Company knee deep in change. Their Membership in the National Association of Mortgage Field Services (NAMFS) Regime aside, SFS seems adamant about doing things the legal way.
SFS is most notorious for their US Department of Housing and Urban Development (HUD) acquisition under the Marketing and Management (M&M) 3.0 Contract. With a fever of underbidding which seemed to simply be guided by a drunken stupor, SFS took on some of the most difficult areas for pennies on the dollar. Former Chief Executive Officer (CEO) Thomas Inserra appeared to be hell bent on Deep Sixing Sentinel — that is not a pun upon his Six Sigma either as there is no indication of TIMWOOD. We broke the story of his departure before perhaps even Inserra himself knew he was leaving! If you do not know TIMWOOD, you do not know jack.
In a time when the landscape of the Industry is much like a high rise building; when the focus is incorrectly concentrating upon the boarded windows on the ground floor, the top suites are not receiving proper scrutiny. In an unregulated Mortgage Field Services Industry, the ability to self regulate is a long shot for many firms.
Phil Johnsen, the new Chief Executive Officer (CEO) of SFS came onboard officially towards the end of July, 2013. Earning an MBA from the David Eccles School of Business at the University of Utah in 1987; a BA in Psychology and minor in Spanish, Johnsen began working his way up the Ladder efficiently. At First American, Johnsen got his feet wet with sales. Then, at DDN Mortgage Services, Johnsen propelled to the position of President during some of the most challenging times of the Sub Prime Crisis. Johnsen did brief stints at both Prime Renovation and Consulting as well as NexTalk where he was the CEO as well. In his two and a half decades plus career, Johnsen has seen the good and the bad; Johnsen got the Roads Scholarship in both spinning up and spinning down companies. Did I forget to mention his his Six Sigma Green Belt? This dovetails nicely with SFS’ Six Sigma mentality.
The question that presents is whether Johnsen has the where with all to navigate Sentinel through the turbulent waters of an Industry which is artificially floating. The reality is that nothing is as it seems with respect to quality or quantity. While there are rumbles by the Consumer Financial Protection Bureau (CFPB) with respect to moving some of the Zombie Foreclosures through the cattle shoot, nothing has happened yet. The additional danger is whether or not the US Department of Housing and Urban Development (HUD) is going to implement HUD 188.8.131.52 provision selectively or across the board.
With people like Lee Mertins, Greg Harrison and Ernie Stepkovic out plowing up the NEVER CHANGING ground of the HUD Marketing and Management (M&M) Contracts; nothing new under the Sun in that the names never change of the people only the Companies, one has to ask whether or not a legitimate Company will get any love from HUD.
Johnsen brings some qualities, though, that HUD should obviously take a closer look at. To me these skill sets stand out and potentially impact the overall alleged goal of HUD. Let’s talk sales: Johnsen obviously knows Sales like the back of his hand. Valuations. While many might look at his experiences during the Sub Prime Crisis; his experiences when he was on board with major firms which went south, as a hinderance I look at them as meritorious. Here’s why: To understand the dynamics of what is necessary to prosper, one needs to understand the post mortem on failure.
Sentinel is not on life support by any stretch of the imagination. While I do not have unfettered access to their financials, I do have how shall we say creative ways of dipping my beak into pools of information. The key to staying the course is obviously the ability to have hindsight’s 20/20 in full view.
The problem with Regulation; the problem with attempting to self regulate and still be profitable, is best displayed by Benjamin Lawsky, the superintendent of New York State’s Department of Financial Services (NYDFS). Lawsky is attempting the shakedown of Ocwen vis-a-vis Hubzu and Altisource. In an upcoming Article which changes the Course of Foreclosurepedia, we did a pretty in depth study of Lawsky’s impetus. On the one hand, Regulation is are admirable if properly implemented. The problem becomes, though, when you look at say NYDFS as a microcosm; the fact that the State of New York is running off their wealthy whom shoulder the Socialistic Agendas which they employ, the macrocosm of the US Government begins to believe that maybe shakedown is the way to finance insanity.
Capitalism should fundamentally reward businesses which provide both a good product and deliver such in a legal manner. Unfortunately, the NAMFS Regime disagrees as is displayed by folks like Buczek Enterprises and Heather Berghorst. The single most dangerous environmental condition within the Mortgage Field Services Industry today is the National Association of Mortgage Field Services (NAMFS) Regime. The NAMFS Regime poses a clear and present danger to both a free market economy and traditional capitalism.
So, what is the recommendation on buying the call on Sentinel? What, more precisely is the strike price and is Sentinel anticipated to exceed such? I believe when we look at the dynamics of Sentinel, the strike price is going to skyrocket. The only question which presents is whether or not the nefarious forces at play will allow them to succeed.