We’re Number ONE !!!

September 26th, 2005

Governor Bill Owens
136 State Capitol
Denver, CO 80203

This open letter is the second of a series. The first letter is dated 09/02/05.

Colorado now leads the nation in foreclosure. Texas is bigger, but we have the highest rate of foreclosure in the country. See Rocky Mt News article dated 9/10/05. Atlanta has long held the unofficial title of Mortgage Fraud Capital – but Denver is making a strong bid to take over that dubious distinction.

A reliable source puts 2 more items in the shopping basket of Shawn Tieskotter – see attached summary showing 13 properties and $602,000 cash in pocket.

The Dream Team

See also the summary of 9 purchases by Dennis Sharkey. Dennis worked with the same team, and did pretty much the same thing as Shawn Tieskotter. I am now calling this group “The Dream Team”, identified as follows:

The Dream Team:
Buyer #1	Dennis Sharkey
Buyer #2	Shawn Tieskotter
Real Estate Agent	Kimberly White
Mortgage Broker	Craig D Patterson
Appraiser	Adam Conner

Tieskotter and Sharkey purchased 22 properties, with nearly $900,000 cash revenue from inflated mortgage loans.

I prepared a summary of 9 properties bought by Vicki Dillard Crowe. As far as I can tell, Ms Crowe is not involved with the Dream Team. It may be that she has done nothing illegal and nothing wrong. In my opinion, some (or all) of the Crowe loans are high risk.

I see more and more of this -- high risk loans with the buyer obtaining large sums of cash. Here are three recent examples:

Recent Example #1

July 29th, 2005. Address = 6191 Dunkirk St, Aurora, CO 80016. Jamaica J Crowe was able to obtain a $620,000 loan with the help of CBSK a/k/a American Home Loans. Ms Crowe used $548,000 to buy the house, and walked out of the closing room with $72,000 cash. Cash money to spend as she chooses.

Think I am exaggerating? The attached MLS listing history tells the story.

Is Jamaica Crowe related to Vicki Dillard Crowe?

Jamaica Crowe bought a house on 5/24/05 for $395,000 – mortgage provided by Fieldstone. 2 weeks later she bought another house for $400,000 – mortgage provided by MILA. The Dunkirk property (example #1 above) was her 3rd property in 2 months. Are there more in the pipeline?

Recent Example #2

August 7th, 2005. Address = 6731 Locust St, Commerce City, CO 80022. Amanda Melina was somehow able to obtain a $288,000 loan on a $189,900 purchase. She walked out of the closing room with a twinkle in her eye and $98,100 cash in her pocketbook.

Public Records (copy attached) says the lender is: Lenders Direct Capital Corp. According to my calculations, this loan is 152% LTV. Does anyone doubt this loan found its way to the secondary market, marketed as 100% LTV?

My dictionary says: Fraud = Intentional deception to cause a person to give up money. Something said or done to deceive.

Am I being too harsh? Lenders Direct Capital also made a $292,000 loan to Shawn Tieskotter, and they made a $318,000 loan to Dennis Sharkey.

I could be wrong, and I hope I’m wrong, but until I see some evidence – my opinion is: the business plan at Lenders Direct, Countrywide, New Century, Fremont Investment, Fieldstone, et al ad nauseam, is to act dumb and repeat the process as often as possible.

Shame on you Michael McQuiggan, president of Lenders Direct. Clean up your act.

Recent Example #3

460 S Estes St, Lakewood, CO 80226. This property closed 8/22/05 – 2 weeks after example #2. WMC Mortgage (a/k/a General Electric) made a $245,000 loan, supported by a $245,000 appraisal done by Kevin Thistle (License CR40024770). Any idiot can see this property would not sell for $245,000 – not even close. The seller accepted $190,000 after 300 days on market. The buyer sauntered away from the closing table with $55,000 cash in pocket and a smile on her face.

The MLS listing tells the story – copy attached.

A close examination of example #2 and #3 reveals Amanda Melina bought both of them. Are there more in the pipeline?

Does anyone doubt WMC Mortgage used a $245,000 appraisal (lipstick on the pig) to sell this loan, i.e., collect a fee (make a quick profit) and somehow pass the risk on to......does the work “sucker” come to mind?

My dictionary says: Sucker = A person easily cheated. Dupe.

Amy Brandt, President and CEO of WMC Mortgage, is leading the way, but this is a team effort. The appraiser, mortgage broker, buyer and seller with help from the real estate agent – everyone knows what needs to be done, and they do it. They all walk away from the closing table with cash. The appraiser, mortgage broker, and the “lender” act dumb and hope for a chance to repeat the process.

Shame on you Amy Brandt. Shame on you Kevin Thistle. Clean up your act.

Quoting Bob Kole, Chairman and CEO at New Century Financial Corp – press release dated Friday 9/23/05:

Recent trends in interest rates, coupled with concerns over housing prices, energy costs and other inflationary pressures, have caused a significant deterioration in the secondary market”

What Bob is saying: suckers (the secondary market) are getting harder to find.

Hello Bob – it’s not interest rates, it’s not housing prices, it’s not energy costs, and it’s not the cost of a loaf of bread. It’s you Bob. Look in the mirror.

Pardon me while I puke.

Sincerely,

Philip G Rice
11268 E Linvale Dr
Aurora, CO 80014
720-282-3376

-- End of Letter --

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