We kick off today with our feet elevated to a precise angle in order to allow just enough of the sun to reach my four fingers depth of Scotch — neat, not on the rocks. You need the ability to become rapidly inebriated when plumbing the depths of the criminal collusion ongoing in our Industry. Much like the college protesters are shacking up in tents across college campuses and screaming f*ck Joe Biden, so to are Industry contractors while they scream f*ck Eric Miller. And while it is the ultimate display of irony in that each group are unified on a core hatred, the reality is that the college protesters are in tents by choice and the contractors are in the tents due to poverty. Look, if this was an off cuff repeat of the Nikki Glaser roasting of Tom Brady, no party no foul. The problem here is that Labor has become Management’s proverbial frogs in a skillet — albeit the aphorism has been disproven. Fact of the matter is Eric Miller knew the price hikes From Fannie Mae, Freddie Mac, and HUD would never flow downward to Labor. The bigger problem now is that with those massive price hikes in conjunction with mergers and acquisitions underway by MCS, the price cuts underway will be hard to explain to regulators at CFPB.
When SCOTUS — that is the Supreme Court of the United States for those of you recently crossing the border — ruled that the Consumer Financial Protection Bureau (CFPB) and its funding mechanisms were constitutionally protected, Wall Street, financial institutions, and many Prime Vendors howled. It was a ruling that no one saw coming other than those who knew that the somewhat Honorable Clarence Thomas needed to look human. The CFPB ruling of “… 7-2, in an opinion by Justice Thomas on May 16, 2024. Justice Kagan filed a concurring opinion, in which Justices Sotomayor, Kavanaugh, and Barrett joined. Justice Jackson filed a concurring opinion. Justice Alito filed a dissenting opinion, in which Justice Gorsuch joined” was a smack in the face to the Koch Brothers, et al. — see that pun on the law there. The CFPB’s hatred stems from their public database that anyone may file a complaint into even remotely associated with being a consumer. Many of the Prime Vendors in our Industry have complaints filed against them there. What everyone fears is the Civil Investigative Demand (CID) powers of the CFPB, so generally, within 15 days, you will get an answer — and it will be VERY PUBLIC!
Our Industry has always operated in the netherworld regions with secrecy and a lack of both regulation and transparency. We have no required training, no oversight, chargebacks are issued much like a King to a peasant, and still no NAICS. No TED Talk necessary to interpret the writing on the wall, here. When you have a single entity such as MCS, wholly owned by a boutique, private label hedge fund like Littlejohn & Co., whom now has bought out Carrington Home Solutions, Chain Store Maintenance, CoreLogic, Epic Real Estate Solutions, GIS Field Services, Lenders Title Solutions, M&M Mortgage Solutions — and now Five Brothers amongst others — it becomes extraordinarily difficult to explain massive profit increases while decreasing pay to Labor. It’s kinda like trying to explain shitty water: how the subtle tones of mesquite settled on the ice pack after the fire of ’82 or why you have boil notices issued twice a month due to the fentanyl and meth content in your tap water.
In full disclosure, Foreclosurepedia is working with several Contractors who simply have had enough of the National Association of Mortgage Field Services (NAMFS) dog and pony show. They made the investments necessary to not only file complaints with CFPB against Prime Vendors, but additionally bring their claims to DoJ and FTC. And while a determination of anti-trust many not be made, it will damn sure cost the Prime Vendors a hell of a lot of time for depositions and money defending against the CID’s.
That is the problem, today. There no longer are referees on the field. And the damages on both sides are far more elevated than they were not so long ago. The end of the era happened when Asset Management Specialists sold to MCS, over a decade ago, for tens of
millions of dollars. The adults left the conversation when folks like Alan Bunker, Tom Cono, Dale McPherson, Ernie Stefkovic — and yes even Robert Klein — left. Granted, back then it was ran like the Mafia; however, you had a veritable sit down before insanity broke out. Think of it like how then President Reagan, a Republican, and Speaker of the House Tip O’Neill, a Democrat, would have an evening Scotch together, regardless of the politics. The true irony here is that while all of the major firms have sold out to institutionally based hedge funds, the reality is that our mess is not their fault. It is the fault of those retained from the sales of the companies whom perpetuate the lies keeping the two sets of ledgers afloat. What institutionally based firms understand, though, are Civil Investigative Demands (CID). CID’s force public and private hedge funds to provide documents not only to the CFPB, but the victim, as well. Additionally, CID’s are appropriate when complaints are filed against Fannie Mae, Freddie Mac, and HUD for intentional fraud and lack of oversight.
The problem this go around is that while the employees of these massive firms used to cycle in and out of other firms whom were awarded contracts, not many of those options exist anymore. And with a second round of layoffs poised to drop on the Industry due to a demand for larger corporate dividends — inflation is a motherfucker to each and all — those laid off will definitely have non disclosure agreements in play, but they certainly will not have the corporation backed lawyers to defend against the claims coming forward. More done with less is the mantra that Vendor Managers have preached to get their bonuses. Now, they too will feel the crack of the whip. Make no mistake whatsoever, a simple deposition taken of a Vendor Manager costs more than the mortgage on a McMansion when it comes to legal representation. The more the merrier, I say, as there are no prisoners taken when it comes to fraud.
