The Mortgage Field Services Industry is being assailed on multiple fronts as Eric Miller’s nearly defunct National Association of Mortgage Field Services (NAMFS) struggles to even keep the lights on in Stow, OH. For years, Foreclosurepedia has trumpeted the dire warnings about the coming employee misclassification litigation. And for years, Eric Miller, NAMFS Executive Director, as he assuaged fears much like a purveyor of snake oil in the Oklahoma Territory. Fact of the matter is that Miller is payed over ONE HUNDRED AND TWENTY THOUSAND DOLLARS PER YEAR to do nothing other than recommend that NAMFS members work amongst themselves with respect to employee misclassification under the Dynamex ruling in California. To put that into perspective, Eric Miller’s annual salary consumes OVER EIGHTY PERCENT OF ALL NAMFS MEMBER DUES! And for the 6th year running, Foreclosurepedia had to file an IRS 13909 Complaint in order to compel Eric Miller and Justis Smith, NAMFS President and CEO of Rowe Enterprises, to release their IRS 990 income tax forms required under federal law.
Curated articles on LinkedIn opined as follows,
The majority of Americans now consider renting more affordable than buying a home — a belief that could foreshadow a decline in home sales. 78% of those surveyed by Freddie Mac say renting is more affordable than home ownership, up 11% from just six months ago. And a further 58% of renters say they don’t currently have plans to buy a home. Rental prices have steadied in recent months as supply hits a three-decade high, while home prices have been rising faster than income.
Why is this serious? Well, we are shifting from an individual, owner occupied housing environment into an institutional based environment. To put it in layman’s terms, individuals are foreclosed upon, institutional owners are not. And according to the Wall Street Journal, some 78% of people now say that renting is more affordable than owning, according to survey data to be released Tuesday by mortgage company Freddie Mac. That is up 11 percentage points from only six months ago.
Let that number sink in, for just a moment. As of 2017, there were roughly 325 million people in the US. Out of those, nearly 93 million were of legal age to purchase homes. What Freddie Mac is saying is that SEVENTY TWO AND A HALF MILLION PEOPLE have thrown in the towel with respect to home ownership!
From a serviceable, volume point-of-view, the Industry has had its light at the end of the tunnel permanently shut off. Even if a new Crisis hits tomorrow morning — and Foreclosurepedia predicts it will not arrive until at least FY2019Q3 — there will be no help for Minority Females and Labor still languishing under the Draconian employee misclassification and outright theft of wages vis-a-vis chargebacks for 18 months to come.
And it is not simply the fact that there is no inventory upon which to service, debt in all of its aspects is eating away at the underlying economic house of cards in the US. Vox had this to say about student loan debt which even the NAR wrote a document upon,
The average student loan debt in the US is $32,731, according to the Federal Reserve — and the collective student debt carried by all Americans hovers around $1.5 trillion. These high debt levels prevent millennials from purchasing homes, even if they really want to. A 2017 study by the National Association of Realtors (NAR) and American Student Assistance found that student debt delays millennial homeownership for seven years.
Let’s go further, though. The deficit in which the US is running at is roughly $27 trillion. That alone is serious; however, it gets more serious when we begin to closely examine the costs to service the interest on the debt which comes in at well over $523 billion. And when you begin to see the Chinese, Saudis, and Russians decide to stop purchasing our debt — and that day is not far off — the 2008 Crisis will look like a joke. Corporate tax receipts are at a SEVENTY FIVE YEAR LOW!
There is some money out there. Hedge Funds are ripping and rolling throughout the East Coast with flips and tenant occupied work. Surprisingly, though, even the Hurricane work, normally readily available, is being adulterated with respect to NAMFS members attempting to come in and land contracts and not even understanding basic concepts like Assignment of Benefits (AoB) and other necessary forms which kick off the restoration process. When combined with the simple and salient fact that most of these homes damaged require both the financial institution and the homeowner to sign off on payments, the environment is becoming ripe for fraud from Day One.
What we do know is this: The Industry has forever been altered by Eric Miller and NAMFS — and not in a positive way. Billions of dollars have been defrauded from financial institutions, government sponsored enterprises, the US government, and Labor. This has been witnessed, first hand, in the federal deposition given by Shari Nott in the Involuntary Bankruptcy of National Field Network owned by Jack Jaffa of Jaffa & Associates.