Over the past several years, the massive tanking of National Association of Mortgage Field Services (NAMFS) membership has resulted in an unstable Industry. From bankruptcies to litigation, NAMFS members have gone dark by the droves. For years, Foreclosurepedia has documented the rampant financial terrorism wielded by NAMFS members across the United States. And for years, NAMFS Executive Director, Eric Miller, has bled NAMFS coffers dry. Miller’s ONE HUNDRED AND TWENTY THOUSAND PLUS DOLLAR A YEAR SALARY consumes nearly EIGHTY PERCENT of all NAMFS member dues. And as a non profit, this is a serious issue. Moreover, though, Miller’s refusal to obey federal law and turn over the 2018 NAMFS tax returns, as required by IRS, strikes at the very core of this corrupt organization. And after years of tens of thousands of dollars in raises for Miller and after years of hundreds of thousands of dollars in unfilled NAMFS #FraudFest convention bookings, the reality is that NAMFS has collapsed. The problem is that for everyone other than the Miller Regime, this is a self evident truth. More than a truth, though, NAMFS has demonstrated that its Board is willing to face the specter of audit from the IRS. Pretty brave, if you ask me.
Sophocles said, Things gained unjust through fraud are never secure.
Twenty two months ago, Foreclosurepedia wrote a series of articles which predicted not only the massive litigation and judgments against NAMFS members, across the US, for employee misclassification, but also the bankruptcy and ultimate consolidation of NAMFS members under the roof of investment firms. And the blue skying of these firms to investors is now starting to bite them in the ass.
At every juncture within the Industry, Labor has been forced to shoulder the burden of Management’s total and abject failure. Lies such as the US Department of Housing and Urban Development (HUD) adjusts bids; lies such as volume with lower pay equates to profits; and lies such as investment firms are going to be a blessing and fix the viper’s pit in a manner conducive to the protection of Labor, are all just that, lies!
For awhile, Foreclosurepedia was cautiously optimistic that HUD would, at minimum, obey what laws they chose to enforce. We believed that while the proverbial bribes would still flow, surely to God none will ever wash the stench off of illegal foreign influence peddling and outright control. We were wrong. In fact, when Foreclosurepedia brought forward information to HUD pertaining to the sale of firms controlling nearly ONE HUNDRED MILLION DOLLARS in HUD Management and Marketing (M&M) Asset Manager (AM) and Field Service Manager (FSM) contracts, a Senior HUD Official gave a reply as tepid and lukewarm as a soldier attending to the wounds of an enemy combatant,
The simple answer is that no final decision has been made, but it could very well result in litigation between the Department and the parent company. Their attorneys have been going back and forth with HUD counsel trying to avoid a Novation. That’s about as much as I can disclose.
Attorneys going back and forth? Attempting to avoid a Novation? Whatever happened to the law requires that you inform HUD if you sell your company? Foreclosurepedia had to do that! A total and complete shit show. With respect to Guardian Asset Management, the largest award of non competitive bridge contracting in HUD’s history — $35 Million in Awards which will equate to roughly $28 Million in their pockets based on estimates provided by a HUD Senior Official.
Investment Firm buys Company A whom they have been sending work to. Company A has been padding by 25%, for years, and then pulling in charge backs and/or Missed Completion Date fees. And remember, Company A will do its damnedest to ensure that no matter what Labor does, the Completion Date can never be met. No way for the Investor to ever extricate those two revenue streams. To do such would both create a criminal enterprise — remember Sarbanes Oxley is in play — and additionally, the original actuarial formulas utilized to determine profitability become moot.
The purchasing of predominately preservation oriented firms by Investors has been highly problematic. First and foremost, when these firms blue sky their purchaser, the fact remains that they have to justify the fluffing of their numbers. One of the most egregious of these line items is the built in charge back. Probably accounting for a minimum of twenty percent of all gross revenue, the prospect of anecdotal statements that the New Boss Is Different From The Old Boss is complete horse shit. Part of the reasoning is that the seller must remain in play for months in order to walk the new company through the process. That means that any attempt to correct ills would badly reflect upon the bottom line. Moreover, though, it could potentially lead to the conviction(s) of those blue skying their valuations.
There is more going on though, than #Fraudsters peddling their wares to unsuspecting Investors like snake oil. If an honest and comprehensive review were made of the False Claims Act violations being passed on to the US government, the impeachment of Trump would pale by comparison. And as the toll continues to be taken upon the innocent men and women of Labor, the inept blue skyers continue to push their inept abilities down upon Labor’s collective shoulder.
The very few firms I have been bullish on, in the past, have me extremely concerned. The inexorable march; this deeply held view that Labor and ONLY Labor can be to blame is dangerous. And the Emperors Whom Wear No Clothes parading around with their pompous entourages are signalling a serious crisis fomenting underneath the festering scab which is the Industry. Their sycophant behavior inextricably locks horns with reality as they demand obsequious attention from Labor. Paradoxes within Paradoxes. One thing which remains constant is the fact that those on food stamps and government assistance in the Industry is on a sharp rise. My quarterly feedback from Labor is startling!
The Comedy of Errors which has become the Mortgage Field Services Industry is rapidly being replaced by skilled Labor. And you know what, savvy Investors are willing to pay the direct-to-contractor pricing, as opposed to the 40 – 60 percent markup on hacks.
Foreclosurepedia has long attempted to salvage operations in the preservation sector. Those days are fundamentally gone. Whether it be based upon the vapid diatribes self important vendor managers exist or the outright dereliction of duty exhibited by their supervisors, the reality is that it is no longer worth the hassle. In fact, I would be hard pressed to recall the last time I even replied to a contractor whining about not being paid unless they were a member of the International Association of Field Service Technicians (IAFST). More importantly, though, I almost exclusively consult on the rehab and restoration side of the Industry in conjunction with contracting direct with the US government.
Commerce and trade does not suffer fools. Anyone whom believes that the NAMFS members have been such are sorely remiss and will be taught that same tune over and over again. Labor has been the fool to tote debt for months on end, interest free, only to be told they will not be paid but Please Sir May I Have Another?! And going forward, the jury is out on whether or not Foreclosurepedia will jump back into the ring on behalf of Labor overall — at least on the preservation side. What is clear; what is right as rain, is the simple and salient fact that I have not been wrong yet.
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