Wherever There Is A Carcass! There The Vultures Shall Gather! What Some Mortgage Brokers/Marketers Did Once The Housing Market Crashed!
Wherever There Is A Carcass! There The Vultures Shall Gather!
August 6th, 2012
Written by John Wright
Please be advised the following article should not be considered an indictment of “Honest Mortgage Brokers”. This article addresses the topic of “Greedy Dishonest Mortgage Brokers” because it was “Greedy Mortgage Brokers” who played a major role in our nations largest financial disaster since the Great Depression. Please be advised any and all complaints are to be sent to Martin Andelman at firstname.lastname@example.org and any and all compliments are to be sent to Piggybankblog@earthlink.net.
Therefore — Ladies and Gentleman of the Court of Public Opinion — I present you “Wherever There Is A Carcass! The Vultures Shall Gather!”
There was a time when young mortgage brokers were making ungodly amounts of money from the fraudulent real estate bubble they helped to create. They did this by qualifying borrowers for home loans with little or no income verification. This would inevitably put most borrowers into predatory loans…. but the brokers did not care. Before all this started, most of these young professionals had no more than a high school diploma. Overnight they came into a lifestyle full of fast cars and fast boats and fast jet skis because of the instant FAST MONEY. Money they made from the FAST COMMISSIONS from the sales of these predatory loans. Their marketing attempts would target some of the most unsophisticated segments of our society such as the elderly — the non-English speaking and the disabled. It would prove to be even worse if the borrower were all the above.
In just a short period of time this new found success for young professionals would give rise to young and rich communities around the State of California and Florida such as the community of Orange County California. Homeowners should not have been surprised when they received marketing mailers in their mailboxes from some company based in one of these communities. It was here that the mortgage broker/marketer lived and built what would become the mother ship for broker/marketer companies. They built their homes and the Orange County Community and the communities in Florida on the INSTANT SUCCESS brought to them by tricking homeowners into predatory loans. It would also give birth to television shows displaying the lifestyles of these new rich young professionals titled “The O.C.” on television. The O.C….. was an updated version of the show Lifestyles of the Rich and Famous. Now it might be better titled ”The Lifestyles of the Young and Spoiled and Rich and Selfish.”
I am sure that the regulators could solve more than half of the housing market issues by simply dropping a nuclear bomb on both Orange County and these mortgage broker/marketer communities in Florida.
Presto! There would be no more mailers in your mailbox!
However — when the housing market crashed — the mortgage broker/marketer would be forced to find other ways to continue making “fast money” to support their “fast lifestyle”. A lifestyle to which he or she had become accustomed — and possibly already addicted. This metaphoric drug dealer (mortgage broker) killed all of their customers by selling these bad drugs (bad loans) to the homeowner.
This meant that they would have to find some other venue in the housing industry where they could use their natural born talent of being an “asshole” and start to “market a new product” to the homeowner that would allow them to continue making fast and large sums of money. The mortgage broker/marketer would do this by going into the “Loan Modification” business.
Loan Modification Companies
A loan modification is a change in the terms of a mortgage –modifying the original terms of the contract agreed to by the lender and the borrower. This offer was mostly sparked in 2009 when the banks announced that homeowners could apply for a loan modification. This is when some mortgage brokers/marketers came up with the idea to start “shell law firms”. “Firms” that allowed them to communicate with the legal department of the bank to obtain a loan modification for a homeowner. Now for those of you who do not know the term– a “shell law firm” is a company that has all the appearances of a legitimate law firm , run by an attorney. However in reality — it is a law firm that has been built and is run by the mortgage broker/marketer. For several reasons this is highly illegal but mainly because a non-attorney is not allowed to run a law firm.
The marketer will usually choose a young attorney who is pretty much right out of law school and easily seduced by the all the money the marketer is offering. The main reason the marketer might have chosen a young attorney is because they are naive. The older attorneys are usually too savvy to allow a marketer to control them — they might simply want all the money for themselves. Seasoned attorneys already know — why pay a marketer when I can do this myself – right Mr. Stein?
The blueprint for a “shell law firm” is similar to how a drug dealer gives some young kid a beeper and a nice car to get him to peddle drugs for them. Subsequently — this blueprint would end up turning the “law firm business” into nothing other than a “one big gigantic mass marketing machine” for the mortgage broker/marketer. Now they found another way to make fast money for their fast lifestyles after the housing market crashed. The irony of this is — they would market themselves as part of the solution — when in reality — they played a major role as part of the problem; collapsing the housing market by getting you into those predatory loans. Therefore — you might want to think twice about those loan mod companies that were saying they offered this service because they cared so much about the homeowner and hated what the banks had done. (Staring at them with my tongue in my cheek with a smile on my face.)
By 2009 and after paying thousands of dollars to these companies, many homeowners began blaming the loan modification companies for not securing a loan modification for them. It would not be until many years later that we would find out it was actually THE BANKS that were causing the problem for the loan mod companies. As we have all come to know — the banks would supersede all others and become the largest loan mod company scam in the world after HAMP was offered to the public.
Bank of America’s Adaptation of the “Righteous Brother’s” hit “You’ve Lost That Lovin’ Feeling:
- “You never fund our loan anymore without tons of shit,
- there is no 30 day mod anymore –
- they just don’t exist.”
- “We’re trying so hard to fund it.
- Baby! Oh Baby! — believe me I know it!”
- “You lost that funding feeling,
- whooooah that funding feeling,
- you’ve lost that funding feeling,
- now it’s gone, gone, gone….”
- “Baby — Baby I get down on my knees for you
- if you would only fund us like you used do.”
Yet we did not see anyone raiding the banks at gunpoint with badges like we did with the loan modification companies. It might be because a Communist Leader in Russia once said — “If you kill five people you are a murderer. But if you kill millions of people you are Statesmen”.
Eventually the loan mod companies experienced exactly what the homeowners would experience with the banks — the banks claimed they never received the paperwork from the loan modification companies — paperwork that was sent months previously on behalf of the homeowner. Sound familiar? Even so– I do not think the banks were lying about this. I think the real reason the bank did this with the loan mod companies was for the same exact reason that they would do it with HAMP. It was simply because the banks were not built to accommodate millions of loan modification requests that were now coming in from these mass marketing machines all at the same time. That is why I theorize that the CEO at Bank of America might have said the same thing as the Captain of the Titanic when those loan modification requests flooded in. He might have said – “Where is all this fucking water coming from?” The answer is from the Loan Modification Companies that were started by the mortgage broker/marketer!
Then in 2009 the media and the authorities began to crack down on loan modification companies in the State of California.
July 23, 2009
In September of 2009 California lawmakers passed SB94 preventing anyone from taking up-front fees to negotiate a loan modification. This was pretty much the end of the loan mod business.
So—now– the mortgage broker/marketer would need to find other ways to continue making this “fast money” to support their “fast lifestyles”. Seems they had become accustomed to fast living if not already addicted to it. Accordingly they would need to find some other venue in the housing industry where one could use their natural born talent of being an “asshole“ to “market a product” to the homeowner. To continue making fast and large sums of money, they went into the “Mass Joinder Lawsuit” business.
Mass Joinder Lawsuits
Mass joinder lawsuits are for individual plaintiffs jointly using the same legal arguments and applying them to their unique and individual situation. It has been said that mass joinders are the way to go –mainly because the average “individual lawsuit” against a bank could cost somewhere around 150k. Well I guess if you had 150k you would not need a loan modification in the first place. This is exactly why the homeowner was attracted to the mass joinder lawsuit.
The first mass joinder lawsuit that would rise up out of the Great Mortgage Crisis would be the Ronald et al vs. Bank of America lawsuit in California. This lawsuit was filed by a legitimate law firm that was not born from nor run by marketers. It would be filed by the now infamous Attorney Mitchell J. Stein. The now infamous Attorney Phillip Kramerwould also work on the Ronald lawsuit for a period of time—makes sense –considering their offices were right next door to one another. However — for some reason –(scratching my head) – after the mass mailer scheme was revealed by the BofA attorney — Mitchell J. Stein moved his office to Agoura Hills, California– away from Phillip Kramer. Originally there was no charge to be in the Ronald et al vs. Bank of America lawsuit. That was until maybe the mortgage broker/marketer was able to seduce Phillip Kramer into a mass marketing scheme. This is when it might have appeared that the mortgage broker/marketer might have finally found themselves an older greedy attorney to control instead of a young naive greedy one. Yet – if we were to consider “Philip Kramer” to be more like the “Oliver North” of the Iran Contra scandal – I guess it could be said that “Mitchell J. Stein” would be more like “Ronald Reagan” in the mailer scandal. Simply because Mitchell J. Stein would make the same claims about the mailer scandal that Ronald Reagan made about the Iran Contra scandal. Mitchell J. Stein would deny that he knew anything about the mailers and had no affiliation with Phillip Kramer– even though he apparently worked right next door to him. -- click here
Unfortunately for Mr. Stein –the California Attorney General was able to produce emails between Attorney Phillip Kramer — the Marketer –and Attorney Mitchell J. Stein which might have suggested otherwise. This would include testimony that Mitchell J. Stein allegedly held up a check to a marketer while saying, …“it’s all about the money!”
Everything seemed to go wrong when Phillip Kramer and these main marketers started soliciting other mortgage brokers/marketers to sell the Ronald et al vs. Bank of America lawsuit for a commission on the sale — positioning themselves at the top of this potential pyramid. Overnight there were dozens of “shell law firms” and other “intake companies” popping up all over the State of California for the Ronald lawsuit. Apparently this caused a problem for Phillip Kramer; because now all these mortgage brokers/marketers were independently sending out mailers to market the Ronald lawsuit to millions of California homeowners. Kramer apparently had no knowledge of the exact wording in the mailers that may have been authorized. Some of these mortgage brokers/marketers stated in the mailer that a homeowner could “avoid foreclosure” if they paid to enter the Ronald et al vs. Bank of America lawsuit. This might have been the first evidence that the mortgage brokers/marketers apparently turned the legal system into a marketable product. It would be equivalent to doctors inadvertently allowing marketers to send out mailers that offered two hearts for the price of one if you came to them for the transplant.
Then one day ‘them there roosters came home to roost’ for both Attorney Mitchell J. Stein and Attorney Phillip Kramer. Martin Andelman from the Mandelman Matters Blog had just revealed to the world a mailer with both “Kramer and Kaslow’s” and “Mitchell J. Stein’s” names all over it. - Mandelman Matters Article. In addition to this — one of the Bank of America attorneys, Mr. Klein, had shown the mailer to the judge in the Ronald et al vs. Bank of America lawsuit. Like President Reagan’s Iran Contra blueprint — it might have seemed to go all wrong. Apparently “Oliver North” did not control Reagan’s blueprint in a way that insured that it would never come back to the President. The blueprint of “Plausible Deniability” – setup to protect the President– might have made him even more vulnerable in the end. The blueprint simply gave too much power to “Oliver North” to act in the name of the President without the Presidents knowledge. That is why Mitchell J. Stein might have said the same words that Reagan said when they told him that the Iran Contra plot had been finally realized – “Oh shoot! I never thought they would do that!”
Phillip Kramer then went into damage control mode. On the Mandelman Matters Blog he said that he would send out a cease and desist letter to every single company that was sending out these mailers. I am guessing there were so many of them at this point that he probably did not even know who was sending them and who was not. Nevertheless — the problem seemed to be solved. That is until –soon after the interview — another “shell Law Firm” named “Mass Litigation Alliance” seemed to pop-up out of nowhere with Phillip Kramer controlling it. Well I should not say –“nowhere” – because it seemed to have popped-up out of the ashes of a law firm namedK-2 Law. The problem was that K2-Law was one of the firms that Phillip Kramer had previously sent a cease and desist letter to for sending out mailers.
This is when I became involved. I was shown an email stating that the CEO of Mass Litigation Alliance had announced to a homeowner that Mass Litigation Alliance was now going to mass market my lawsuit and name. I would completely strike back in immediate protest. I did not want anyone using my name to turn others into victims.
My protest would result in a threat from someone involved with Mass Litigation Alliance.
“Mr. Wright – I must warn you that trying to engage marketing politics wars with powerful people without knowing the nature of the beast could result in devastating consequences, not just for the outcome of your own case, by severe legal consequences as well. You should learn the nature of the beast before venturing into the cave with them. You do not have your facts straight, and although you may currently appear to be protected by your 5th amendment rights (for now), your actions are causing an outrage with some very powerful people. We pray you know what you are saying and doing because many people’s lives and reputations are on the line. How do I know? Because I’m an affiliate of these matters and can easily disprove your false allegations. This blog will not be live for long. High powered people with the authority to take action to stop you from circumventing meaningless propaganda resulting in defamation of character accusations will stop you in your tracks. For your sake, you better hope you have deep pocket books to combat the legal expenses you are about to suffer for slandering important people who have the ability to FIGHT YOU BACK.
The Moral of The Story Here Is Simple: YOU HAD BETTER KNOW THE NATURE OF THE BEAST BEFORE VENTURING INTO THE CAVE WITH HIM.
Mitch is only in this for the settlement money, not for your causes, but even Mitch knows his limitations and realizes when he is playing with fire. Mark my words, this blog won’t be here much longer. Enough said.”
It was readily apparent to me that Satan thought Attorney Mitchell J. Stein controlled my lawsuit — or – my lawsuit was controlled by marketers affiliated with him — affiliates who could hurt my lawsuit – should they be instructed to do so. In the end they would be terribly wrong. What they did not know was that it was Mitchell J. Stein that had given me the heads up that “Mass Litigation Alliance” was getting ready to market my name. Doh! That is why at first I did not think that Mitchell J. Stein had anything to do with the mailer scheme. It just did not make sense to me at the time that Mitchell J. Stein would throw his own people under the bus. At any rate – I do not know who sent the threat — however — I can tell you that it was not an attorney nor Attorney Phillip Kramer. Remember, this person said, “and although you may currently appear to be protected by your 5th amendment rights (for now)….. “ this meant that it was probably a bonehead mortgage broker/marketer who only had a high school diploma before all this. This is because everyone knows that it is my 1st amendment right and not my 5th amendment right. (rolling my eyes and shaking my head) This would be evidence of precisely why these young mortgage brokers/marketers should not be in charge of sending out legal mailers to homeowners.
It is important to mention that this person who gave the threat was also wrong — Mass Litigation Alliance and Mitchell J. Stein are gone — and guess what ? I’m still here!
Now by this time these Phillip Kramer mailers had fallen into the hands of the Bank of America attorneys. They would not only bring it up to the judge in the Ronald lawsuit but also hand them over to both the California State Bar Association and California Attorney General. This resulted in raids on both the offices of Phillip Kramer and Mitchell J. Stein & Associates. I guess the move to Agoura Hills didn’t work.
This would be the end of the mortgage broker/marketer role in the mass joinder business.
Once again, the mortgage broker/marketer would need to find other ways to continue making “fast money” to support their “fast lifestyle” After all — they had become accustomed to the grandeur, if not already addicted to it. They had to find another venue in the housing industry where one could use their natural born talent for being an “asshole” to “market a product” to the homeowner and continue making fast and large sums of money. They would do this by — well — we don’t know yet. It has not been revealed. However – the Get Out of Debt Guy might have an idea!
The Fidelity Land Trust guys potentially sold debt settlements which led to an attorney getting disbarred. They next went into selling debt elimination which led to another attorney getting disbarred (unconfirmed). Fidelity then went on to sell timeshare rescue and finally into selling debt elimination through legal referrals and now to:
Piggybankblog.com contacting both ”Edward Cherry” (by Facebook on 08/05/12) and ”Paul Gellenback” (by phone 08/04/12) of Fidelity Land Trust for a comment.
Hi Edward –
Thank you for accepting my friend request.
I am John Wright with Piggybankblog.com. I am working on a story about Fidelity Land Trust to be posted on this Monday. This is because it seems that the recent story on the “Get Out of Debt Guy” blog about Fidelity Land Trust has sparked the interest of many bloggers that I speak to. I have heard that many of them are also going to be also doing a story on it. This is mainly because of the allegations made about you and others in that article. That is why I thought I would try to track you down to see if you would be interested in answering some questions before I wrote the article. I promise to be fair. This is even though I may ask some very hard questions.
Please let me know if you would be interested in speaking to me on the telephone to answer a few questions I have.
There was no return email or phone call from either party.
Fidelity Land Trust would be a perfect example of why you want to be careful. You might be handing over the deed to your home to a mortgage broker/marketer who simply hands it over to the investor — just like the good old days. You have to be careful because there are many scam artist out here who say to themselves — “THERE IS GOLD IN THEM THERE HILLS!”
Update since this article was written:
- Fidelity Land Trust Busted by Attorney General Bondi
- Get Out Of Debt Guy Blog Gives Warning About Fidelity Land Trust Company Based In Florida. Steve Rhode Said – “The Owners Are A Mystery. Who Really Are They?
- Fidelity Land Trust Busted! Attorney General Bondi’s Office Protects Distressed Homeowners from Mortgage Relief Scam!
- Judges lash out at land trusts, call attempts to cancel mortgages meritless
- Plantation homeowners sue to reclaim million-dollar property they signed away to Boca Raton land trust
- Update on 03/26/13 on Case Filed by Florida Against Fidelity Land Trust, Ed Cherry, Larry Diodato and Others
That is why the homeowners might want to use some serious due diligence when it comes to any company allegedly involved in any record in the past and when companies use a disbarred attorney in the background as a consultant for a two year attorney in the forefront. This advice is based on the fact that these could be signs of a “shell law firm” that is run by the mortgage broker/marketer — mortgage brokers/marketers who are trying to help the investors get a hold of your house during a time when you are afraid and desperate. They might simply be recycling you over and over and over so they can make the commissions from selling you into yet another predatory loan process. All for the fast commissions to which they have become accustomed — and maybe already addicted.
Quote from an article: “But often, it’s more sinister. Evans has handled cases where attorneys will place liens on the home to secure money they think they’re owed, taking advantage of immigrants’ lack of English skills and getting them to sign over deeds.” – Read article
There exist many good homeowner advocacy groups on the internet for any homeowner facing foreclosure. However and unfortunately — there are also a lot of “Shell Homeowner Advocacy Groups” on the internet that were created by “law firm shills” and “mortgage brokers” for the sole purpose of marketing to desperate homeowners. These groups are usually started and operated by “one law firm employee” and “one mortgage broker” and “one internet guru.” It is even better if the law firm employee is both “law firm employee” and “internet guru and computer guy” for the law firm. It is when these three individuals come together in a group that “One Shell Homeowner Advocacy Group” comes into existence on the internet. Then the advocacy group usually produces at least “One Bully Rogue Mortgage Warrior” from their site who is a piggy in sheep’s clothing. –Read Piggybankblog Article
So remember– the next time you receive one of those mailers in the mailbox please realize that you have been chosen by the “marketer” to be ”marketed” to for a reason: “Wherever there is a carcass, there the vultures will gather.” – (Matthew 24:28) So beware of those “who come to you in sheep’s clothing — but inwardly are ravenous wolves” -- (Matthew 7:15)
See! I have warned you! That is why – ”If anyone is to go into captivity — into captivity they will go.” - (Rev 13:10)
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