The US Department of Housing and Urban Development (HUD) just cannot seem to catch a break. And maybe they shouldn’t. The Management and Marketing (M&M) program which offloads millions of dollars in distressed assets absorbed by HUD, originating from insurance claims filed by financial institutions specific to FHA insured properties, has become the albatross hanging around the neck of Secretary Ben Carson. Time and again the M&M Award Process operated formerly by Kimberlee Satterfield, whom recently took early retirement, to Cathy Baker, the now M&M Director, have done everything in their power to encourage the worst of the worst to climb out of the Swamp in order to pocket hundreds of millions of dollars.
Don’t Ask Questions Just Get Back In Line!
HUD has a serious problem and the Drive By Media are starting to figure it out. Transparency has become so opaque that when one attempts to stare into the M&M program even the stare itself is swallowed up in the black hole which HUD has become. Take for example the ability to inquire whether or not an Awardee is performing according to contractual standards. In any other government contract setting this would be public information. When it comes to HUD, though, we are informed that ANY negative information may not be released. Really? As a US Taxpayer I am not allowed to have any idea on how my tax dollars are spent?
Innotion Enterprises is a classic case-in-point. Amos Alexander and Al Espinoza were the architects of this now infamous vampire squid which paraded around as BLM Companies. HUD, in its extreme and unfathomable wisdom, awarded nearly the entire M&M FSM Contract to BLM Companies whom were involved in a Joint Venture with Innotion Enterprises — dozens of states. And the end result was some of the worst performance scorecards in the history of the M&M program.
It is always the key players from the National Association of Mortgage Field Services (NAMFS) whom are first to the fray. And in the case of this article, all are at the trough. And to put into perspective precisely how lucrative it is for these Swamp Dwellers, go no further than NAMFS Executive Director, Eric Miller. Miller is paid over ONE HUNDRED AND TWENTY THOUSAND DOLLARS PER YEAR. To understand that number go no further than the simple and salient fact that Miller’s salary consumes over EIGHTY SEVEN PERCENT of all NAMFS member dues. For a non profit trade association, that number is both astounding and potentially illegal. Moreover, though, NAMFS is borderline financially insolvent when you read through their previous IRS 990 income tax filing,
- NAMFS posted a NEGATIVE $47,283 as revenue for Fiscal Year 2015
- NAMFS earned $493,036 and spent $540,319 — That is $47,283 more than they earned
- NAMFS provided $84,000 in compensation to “…disqualified persons as defined under section 4958(f)(1) and persons described in section 4958(c)(3)(B) by the Internal Revenue Service (IRS).”
- NAMFS Membership Revenue declined by $41,340
- NAMFS Program Service Revenue, their lifeblood, dropped by $71,365
- NAMFS Total Assets dropped another $56,661 — NAMFS Cash On Hand is now $27,403
Democracy dies when it is left unchallenged. And HUD is an entity that continues to operate in the shadows when it comes to what little light escapes from its budgetary black hole. As opposed to most business oriented operations where a common link between systems or individuals might be identified, HUD has a systemic problem. Granted, there are a pivotal group of players whom have, for decades, turned blind eyes to the letter of the law in order to continue the expediency of moving foreclosures from the 2008 Crisis back into the hands of the very financial institutions whom created the mess. One of the biggest problems with this management team has been one hand not understanding the other. HUD has what is known as the National Servicing Center (NSC) headed up by Matt Martin. From the single family point-of-view, the most important liaison with NSC is Ivery Himes,
Here is what I mean,
When an FHA insured property goes into foreclosure it triggers the insurance policy and what is commonly referred to as the FHA 27011. On day one insurance claims begin piling up. You have an initial drive by inspection to determine vacancy. Then, after confirmation, you have a second inspection if vacant. Otherwise, the drive by continues until vacant. An initial service is ordered which includes lawn maintenance, lock change, winterization, health and safety issues, and inventory. Then an ongoing set of maintenance and inspection orders are issued.
Sounds pretty innocuous, right? Where the problem presents is that the markups associated with these services are astronomical. And to that point, HUD is two separate and distinct creatures with two separate hands — one hand washes the other and yet does not know which hand does what. Apparently, the US Department of Justice (DoJ) does not agree. Here is a pending case wherein DoJ stepped in and went after Fannie Mae (FNMA) as well as the Order Mills marking up the pricing on the work orders,
The entire reason for the Rosicki litigation were the markups upon services. These and these alone is what caused a False Claims Act (FCA) to be triggered with respect to the billing to Fannie Mae. In fact, so heinous were the markups that DoJ filed an Intervener pleading. As DoJ argued, when those markups were, in fact, false claims, it triggered reverse FCA under the FNMA Third Amendment. What this means is that the US government are due payments of dividends from FNMA to they during their pendency within government conservatorship. And when Rosicki, et al., overbilled FNMA, FNMA in turn underpaid the US government.
Let’s take the FHA inspections which InspectQ are pawning off for Nationstar – Mr Cooper now known as WMIH, formerly WaMu for a couple of dollars each. For those not familiar with InspectQ, the owners of the now defunct AIM Your Way, Anthony and Suzanne Golden, created the company out of thin air. Mrs Golden was at the Mortgage Bankers Association (MBA) conference, earlier this year, pitching InspectQ as a subsidiary of Nationstar. We know, at minimum, Xome, a Nationstar subsidiary, programmed their website.
We know that Nationstar has originated loans. We know that many of those loans remain in their portfolio. And we know that a subsidiary — InspectQ — profiting from its parent servicer, on passthrough expenses, is potentially illegal in so many ways. My math isn’t that good, but InspectQ was marketing out the FHA Inspections at about four times the actual cost. and I fail to see the necessary add on benefit.
The Long Knives are out. Many are calling into question the veracity of John Bravacos’ Executive Branch Personnel Public Financial Disclosure Report (OGE Form 278e). Bravacos, former HUD Philadelphia HOC Director and consultant to a multitude of Mortgage Field Services Industry firms, is now HUD Secretary Ben Carson’s Special Advisor. Bravacos consulted personally to Milan Thompson, the founder of ASONS now owned by Thompson protege Josh Sarchet, founder of Northsight Management. Bravacos additionally acted on behalf of CWIS LLC whom, along with ASONS, were HUD M&M FSM Awardees. Bravacos was directly involved with, as my Source puts it, “…threatening and intimidating me over coming forward to HUD… [.] And this was not a low level HUD Complaint. Here is the email to the former CWIS LLC Operations Manager from the HUD OIG Special Agent,
I wanted to confirm with that my conference is taking place at the Cheyenne Mountain Resort and Country Club. Are you able to meet me here?
Also…there is a tropical storm approaching Tampa that is expected to make landfall Thursday. Are you able to meet Wednesday after 1:00pm? I know this is an unexpected change, so no problem if this doesn’t work. Let me know….
Special Agent Jamila Davis
Tampa Field Office, 400 North Tampa Street #925, Tampa, Florida 33602
Two points are most curious. First, Bravacos states he left ASONS in June, 2016. Emails which Foreclosurepedia possess, between Bravacos and Foreclosurepedia, utilizing the ASONS email delivery system, dated July, 2016, seem to contradict this. The email above referenced threats from Bravacos to a former CWIS LLC employee and whistleblower Source working with Foreclosurepedia. And yet CWIS LLC is not listed anywhere on Bravacos’ Ethics Form 278 seen below.
With respect to Bravacos, the solution is simple: Dismiss him. With respect to HUD, the conversation is far more difficult and solutions are long term. More on this as we continue to fulfill our Mission of No Contractor Left Behind!