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May, 2006
Aurora Mortgage Blog
Ralph Roberts
In April, 2006 I read a book called "Walk Like a Giant, Sell Like a Madman", written by Ralph Roberts. Mr Roberts is/was the number one selling real estate agent in the country, was on the cover of Time magazine, and they say he still personally sells 400 houses a year. I thought the book was very interesting. I got the book at the public library. I think it was written about 8 years ago.
So imagine my surprise when 3 weeks later my phone rings, and out of the blue - it is Ralph Roberts calling me to give some encouragement and positive feedback on my Website. Ralph has a website devoted to mortgage fraud called Flipping Frenzy. Ralph said he was referred to my Website by Anita Padilla, of MegaStar Financial. And the call from Ralph was no doubt related to this email:
Recent (unsolicited) feedback from a Fort Collins mortgage company.
email dated 5/18/06
Subject: Fraud in Colorado and throughout the United States
Keep up the good work - we need more people like you out there helping to restore the integrity in this business. Let us know if/how we can help.
Sincerely,
end of item
Vicki R Crowe, a/k/a Vicki Dillard
Property Address =
7818 Zeno St, Centennial,
CO 80016
Close Date = 04/21/06
Loan Amount = $1,250,000
Buyer/Borrower = Vicki R Crowe
Lender = Lending 1st Mortgage, Inc
Indicated value = $1,089,000
Indicated Fraud = $161,000 for this transaction,
$1,073,000 since July 2004.
MLS pg1 / listing history / deeds report.a / deeds report.b
Listing Agent = Jeffrey
Skolnick
FA1040415,
Key R E Group
Selling Office = 00513 = Colorado Choice Properties.
Notes: 308 days on market. Loan amount is $160,000 above asking price. The listing agent (Skolnick) bumped up the price $160,000 and reported a $17,000 seller concession.
Jamaica Crowe
Property Address =
17497
E Kenyon Dr, Aurora, CO 80013
Close Date = 01/27/06
Loan Amount = $279,900
Buyer/Borrower = Jamaica Crowe
Lender = American
Brokers Conduit,
American Home
Mortgage (AHM), Michael Strauss
Indicated value = $248,000
Indicated Fraud = $32,000
MLS pg1 / listing history / deeds report
Listing Agent = Sandra Perkins
FA40041185,
Coldwell
Banker
Selling Office = 00513 = Colorado
Choice Properties.
Notes: 417 days on market. Loan amount is $32,000 above asking price.
Jamaica Crowe may or may not be related to Vicki Dillard Crowe. James Crowe is a licensed real estate agent working under the supervision of Thadaus Jackson at Colorado Choice Properties, the real estate office that represented Jamaica Crowe and Vicki Dillard Crowe on multiple occasions (17 times that we know of). James Crowe claims he never met Jamaica Crowe or Vicki Dillard Crowe.
Jamaica does not have the same "think big" approach ("MO") as Vicki Dillard Crowe. One of my readers (a Reporter) sent me an email that said Jamaica may be involved in some kind of religious cult.
FinCEN
Financial Crimes Enforcement Network
The source of this item (where I found it) is Rachel Dollar's Mortgage Fraud Blog. Trackback = http://www.mortgagefraudblog.com/index.php/trackback/1254/
The Office of Federal Housing Enterprise Oversight (OFHEO) will talk to FinCEN. There is a form, and a memo, and of course there are rules about how and when to talk and equally important, how to listen, and how to think about what was heard.
Below is a summary of the lingo.
OFHEO - Office of Federal Housing Enterprise Oversight
FinCEN - Financial Crimes Enforcement Network
MOU - Memorandum
of Understanding
Suspicious Mortgage Information
Form
TD F 90-22.47 = Suspicious Activity Report for Depository
Institutions
12 U.S.C. 1829b, 12 U.S.C. 1951-1959, 31 U.S.C. 5311-5332 = Bank
Secrecy Act
Robert
W Werner
FinCEN
Director
James
B Lockhart, III
OFHEO Acting Director
05/18/06
Stop Mortgage Fraud - A Call to Action
Hosted by the good people at HUD.
Obviously - part 4
Let's take another look at that statement by Shaun. This is a real life example of how people buy and sell houses.
I have the house listed at $199,000. They offered $205,000 with me contributing 3% towards the purchase - meaning their offer is really for $198,850. They also want me to pay for the appraisal and home warranty. I'm going to counter back that they pay for the appraisal and warranty. The only drawback to their offer is that the buyers are getting 100% financing.....
The last sentence says the Buyers are "getting 100% financing". Don't you just love it? 100% of what? The financing is 100% of the amount of the loan. Obviously - the buyer will always finance 100% of the loan. Shaun says (his words) the real offer is $198,850. How hard can this be? The buyers are "getting" 103% financing.
Obviously.
Is this an FHA loan? Maybe. The legislative branch of the federal government made it clear they want HUD not to exceed 100% financing. Alphonso Jackson is trying hard to pretend HUD is playing along. Does anyone think Alphonso would look at this transaction and call it 100% financing, just like Shaun did?
Obviously - part 3
I remember a ski trip to Winter Park about 20 years ago. Getting on the chair lift, I saw a message on a white board. I was distracted by the need to pay attention and get on the lift OK, but I was able to read the message - which said:
Trivia Question - What percent of broken legs happen on the last ski run of the day?
After I got on the lift, I had a few minutes to think about it. I didn't get it immediately, but after thinking for 2 minutes, the light bulb went on. Obviously, 100% of broken legs happen on the last run of the day, for the same reason when hunting for a lost object you always find it in the last place you look. Obviously.
Is there a point? Yes, I will get to the point in the next post.
Alphonso Jackson
Daily KOS has a feature on the head guy at HUD. The good people at KOS are about as far left as this country has to offer - they are not exactly trying for balanced coverage. Take everything they say with a grain of salt. Having said that - just because they have an agenda does not mean they have the facts wrong.
Obviously - part 2
I enjoy reading a blog by Shaun - a real estate investor in Phoenix. Here is a short quote from a recent entry:
I have the house listed at $199,000. They offered $205,000 with me contributing 3% towards the purchase - meaning their offer is really for $198,850. They also want me to pay for the appraisal and home warranty. I'm going to counter back that they pay for the appraisal and warranty. The only drawback to their offer is that the buyers are getting 100% financing.....
I am posting this as a good example of how the real world buys and sells houses. Does anyone else see the contrast between Shaun (real world) and this idiotic statement from the mortgage broker in the next post?
most good appraisers could make legal and honest adjustments to get the additional five thousand dollars. Obviously, had the amount been significant, that would have been another matter.
The mortgage broker says $5,000 is "obviously" not significant. Of course it's easy to be a big spender with someone else's money. In the real world, the seller (Shaun) cares enough about the appraisal and home warranty fees (about $350 each, $700 total) to make a counter offer. And Shaun sums up what nearly every seller would say about this $205,000 offer - "their offer is really for $198,850". People in the mortgage business (anyone want to guess if this is an FHA loan?) will invariably shrug off this difference between the contract (read mortgage) amount and the actual amount paid as just a few thousand dollars -
Obviously, had the amount been significant, that would have been another matter
Obviously - part 1
Email dated May 3rd with the subject line marked URGENT in all caps. From an out of town client (mortgage broker). This was the first appraisal I have ever done for this company.
Hi Phil,
In reviewing your appraisal for Jane Doe I noticed adjustments for
conditions that I know are from your best judgment and experience.
Comparable number two had a twenty five thousand dollar condition
adjustment. I am hoping that since the appraisal is based on estimated
market value that you can find an additional five thousand dollars of
additional value for the subject property. I believe from my knowledge
that the conditions made from all three comparables are from
information received from third parties.
A five thousand dollar increase in value should be easily justified under the circumstances I’ve outlined. Please let me know asap.
Thanks so much, - PS I’m sending this to my home
eaddress as I will be working from home tomorrow
signed -- _______@aol.com.
My response:
How many times have you sent this kind of request to an appraiser? And what kind of response have you gotten?
Her response:
Hi Phil,
I have never sent such a request before. A senior
colleague heard me discussing this with the bank as the deal was close
to begin with and it may fall apart. The senior colleague had been an
appraiser and he asked me if he could take a look at the appraisal,
which he did. He explained the "opinion" only of the comps, etc., and
said most good appraisers could make legal and honest adjustments to
get the additional five thousand dollars. Obviously, had the amount
been significant, that would have been another matter.
And a question on my part. How many appraisals in Colorado have you done in the last three months? I should have asked that question. Please know I'm not challenging you in any way. My request was sincere.
My response:
I thought if you had been thru this before with another appraiser you could tell me how the other appraiser responded.
Why do you ask how many appraisals I have done in the past 3 months? If I have done 10 or 150 how would that matter?
Her response:
Good morning Phil,
Yes, it would matter but too late now.
In any case, can you simply tell me the bottom line? Whether you
believe me or not, I am (and have been) asking respectfully and with
sincerity........
Thank you,
May 09, 2006 = Pub Date
Appraiser's Name
A recent email from a local appraiser says:
Phil,
I recently came upon your "dissertation" regarding the purchases of Shawn Tieskotter which interested me considerably - as I could have contributed to other similar activities by other "purchasers." I am primarily a review appraiser and have seen incredible reports!! But, my question to you is - how do you find out the appraiser's name in these questionable deals??
I am surprised at how often this question gets asked. My response: I am at a loss for words. I am not sure what people expect me to say - some kind of short and "neat" answer?
The conversation goes something like this: I say - Can I please have a copy of that appraisal? They say - "Yes". Then I look at page 1 of the appraisal report and usually find the appraiser's name listed there. Of course this is just an example - every situation has its own peculiarities.
Debbie Campagnola
I got an email dated 05/04/06 from Debbie Campagnola (Stewart Leach's boss) which said:
Mr. Rice,
The Division of Real Estate did receive your complaint against Santiago Silva. You not receiving an acknowledgement letter was an error on the part of staff.
My response to Debbie was 2 words - thank you.
Dear Stewart Leach
re: 4th Request, Complaint Number = Unknown
In September 2005 I authored and signed a formal complaint against the appraiser Santiago Silva, a/k/a Jimmy. After 3 hours of diligent effort to prepare the complaint, I drove to my local office supply store to make a photo-copy. I estimate this took 45 minutes (including travel), $1.50 cash expense for the copies, and 10 miles on my odometer. On the return trip, I stopped at my local post office, waited in line 12 minutes (seemed like an hour), paid about $2.00 of my own cash money for postage.
I estimate 2.5 hours of my time has been spent asking you to confirm (or deny) receipt of the complaint against Santiago Silva, a/k/a Jimmy. It's a reasonable question. Did your office receive the complaint, or not? Despite my best efforts (summarized below), you have refused to answer or even acknowledge the question.
Two months after the complaint was mailed, my first request is dated November 29th, 2005. To refresh your memory, I said:
As you may know, in September of 2005 I filed 20 complaints. I received the standard form letter on the first 3. I am completely in the dark as to the status of the other 17. I respectfully request that you please confirm receipt of the 20 complaints so that I know they did not get lost in the mail.
Second request January 9th, 2006:
It is beyond my comprehension how it can take 2 1/2 months to receive a letter. I filed 20 complaints. 3 1/2 months later your department has confirmed receipt of 4. What about the other 16? Did you receive them, or not?
Third request March 2nd, 2006:
What happened to my complaint filed against Santiago Silva, a/k/a Jimmy? The complaint is dated 9/15/05 – over 5 months ago. This is my 3rd time to ask the question -- did you received it or not? Is there a date stamp on the complaint? Is so, when did your department receive the complaint? Why does it take 3 months and 3 times asked to get a simple answer to a simple question?
This is the 4th request - it's been 7 months since I mailed the complaint. Did your office receive the complaint, or not?
What do I need to do? Use certified mail? Send the question on the letterhead of a local attorney? If it will make a difference, please consider this a freedom of information request, or in the alternative, Colorado Open Meetings (Sunshine) Law (24-6-401+).
Under the circumstances, I consider your lack of response beyond rude. Are you unable or unwilling to respond - or both? Is this standard procedure or am I getting special treatment?
Approximately November of 2005 you sent me an undated letter which asked (challenged?) me to file a complaint. You recently copied me on a 4/18/06 email you sent to another local appraiser - and again you challenged the appraiser to file a complaint. Your email included a derogatory comment that if he didn't file the complaint he "ain't worth a torn up 3-day FED notice".
Stewart, you don't need more complaints - your office cannot handle the existing work load. It has become readily and painfully apparent your office has bollixed up the most simple, basic and necessary fundamental steps in the complaint process - i.e., receive the complaint and log it in. Spell the person's name right. What does that say about you and your department? Ain't worth a torn up 2-day FED notice?
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