And the Next DOJ HUD Victim is – Guild Mortgage

05/23/2016
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HUD and the DOJ haven’t slowed down on their mission to dismantle every FHA lender in the country all the while asking them to send in more business and to loosen their overlays to make more loans.  Guild Mortgage is their latest victim/partner.  We feel like we’re on crazy pills over here!

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30 thoughts on “And the Next DOJ HUD Victim is – Guild Mortgage”

  1. Great post. Way to connect the dots. Makes too much sense

  2. REORealtor1 says:

    Great show. I would love to see all lenders stop doing FHA until this money grab stops. And where have all the fines gone? Oh yes! Congress voted itself a raise this year! Poor things. They can’t seem to take enough graft through their campaign contributions

  3. Robin Scott says:

    Your argument would be bolstered by clearly articulating the “minor errors” that Guild supposedly committed. The CEO’s definition of “minor error” may not necessarily align with how it is characterized by others.
    I am all for reigning in the CFPB and their over-reaching policies, but until you present all of the information in your stories your spirited objections could potentially across to your viewers as one-sided.

  4. Robin says:

    In this story, you should clearly articulate what is being characterized as a “minor error” that led to the issue that Guild is being accused of. To quote the CEO of the company in question as the issue being “minor errors” and not provide what the actual errors are/were seems to indicate that there may be more to this than meets the eye. The only one stating “minor” is the CEO of the company, and absent any detail to consider around the “minor errors”, any thinking person is left with some questions.

    I am all for reigning in the CFPB and their over-reaching policies, but until you give ALL of the facts and allow your viewers to make up their own minds- your spirited objections has the potential to come across as very myopic and one-sided.

  5. Nancy Viejo says:

    The only thing we can do is VOTE. Trump Train or The Hillary Hijacking.

  6. Paul Parkinson says:

    You guys are exactly correct! Unless these lawsuits stop, there will not be a lender alive doing HUD loans that will escape, not even the little guys! The DOJ picks on all the big boys and unfortunately, some of the little guys are out on the street saying, wow, those dirty rats in those great big companies. You deserve to be called on the carpet! BUT, those channels to the secondary market will retract, pull back and quit doing HUD loans and eventually, none of us “little guys” will have a source to fund these HUD deals and suddenly, we are all hurt, whether or not we or our organization has been sued or not!!! Our legislators need to hear about this and someone needs to call the dogs off or we will lose, as a nation, the ability to fund loans for the very people HUD was created to help!!!!

  7. Kim Demma says:

    We (Guild) ARE FIGHTING!!! I am so proud of the service our company provides to underserved buyers and so proud of our underwriters who approve the RIGHT loans, WITH INTEGRITY!!!

  8. I have been watching this for a long long time. Preach on. Great show.

  9. By fare on of the best posts you guys have done! Thanks for saying it like it is

  10. Peter Curtis says:

    I think the banks should just stop lending FHA and put the government on notice. Lets see how long that would last.

  11. What is all over Brian's shirt??

  12. gjh says:

    I think that we have to agree to a certain extent however the local dealings with previous loan officers of the Guild makes us think that the Guild should be a little more selective of their employees or at least check out true qualifications. Example we had a loan officer from Guild tell our Realtors to ” lose the proof of the earnest money so you couldn’t see that the borrower had numerous returned checks and that the checking account statements would show this. That to us is fraud and we refused to have this done. When we told them this the reply we got was” we are a bank and can do anything we need to or want to unlike brokers:.

  13. Beyond ridiculous and maddening!! The DOJ needs more than just a punch in the nose go get em Guild!

  14. Pam Schultz says:

    As a Realtor I have had great dealings with Guild in the past. The danged government just needs to get out of our business. As you say, it is not as if the tax payers are seeing a penny of compensation or reimbursement.

  15. I totally agree with your analysis of this crap pulled by our "Government Gone WILD". It would not be hard at all to give them the finger on FHA loans and just STOP for a period of time. Like Nike used to say…

    JUST DO IT!

  16. Let's all band together and bring these "pubic servants" to their knees. I for one am tired of being treated like a peasant by this "Government Gone WILD!"

  17. Obama and his Liberal freaks running unchecked. If Killary gets elected President look for her to double down and attack even more.

  18. So where does the money go? That is what I would like to know.

  19. This administration is like the mafia…they see the industry as comprised of a bunch of poor suckers they can shake down, continuously and with impunity. It's a money grab of epic proportion. First, they sweep all the profit from FNMA and FHLMC and they sue everyone under the sun, hoping for a juicy settlement. It's sickening.

  20. Guide is a great company and were one of my nvestors when I had my own broekrage in Washington State.

    I'm with these guys idea of a FHA memorandum for three or four months. The industry is gettng punished for underwriting guidelines FHA set; and their AUS Scorecard approved. How about the manual underwriting guidelines? And now, that it's recognized that FHA had loose guidelines to encourage lending back in the 2000's, leading to higher default rates, the DOJ and CFPB are going after the lenders who are only guilty of underwriting to the guidelines.

  21. Make me wonder why lenders have not banded together to go after them in a class action lawsuite as a group vs getting picked off one by one.

  22. Diana Case says:

    Now I get why Wells Fargo is thinking of add an low down, no PMI product….Hope all the banks do and kick freddie and fannie to the curb

  23. Who is John Gault?

  24. Joey says:

    Finally the DOJ catches up with this sleazy lender. The CEO’s claim that now that they may be shut down that only rich people will be able to buy homes is pathetic. The CEO did not follow the simple rules the rest of the lenders follow, because they have agreed to do so in their contracts. This company cuts corners, cheats its employees out of wages and made a decision to underwrite FHA loans, loans we the tax payers are paying for when they go into non payment. I hope the DOJ learns enough to criminally prosecute this CEO and the Capital Management firm out of Nebraska state that now owns this lender. It is not uncommon to have a foreclosure rate of 2-4% on FHA loans, but to have a 40% foreclosure rate at the expense of FHA, we the tax payer, so this shoddy lender can reap huge profits is wrong. What about the hundreds of other lenders who do just find abiding by the same rules? You do not see them being sued by DOJ nor whining and complaining. It is just another example of a mortgage company run by greed, incompetent managers such as this CEO who never originated a loan in her entire career. She cannot grasp the grass roots of this business.

  25. Shocked says:

    Victim? instead of jumping to the conclusion this is a witch hunt, I encourage those who have not yet, go in and read the entire DOJ complaint. It is located on the bottom of the news flash. Whenever lenders enter into a contract with the government on a government backed loan program, they agree to self report and abide by the rules. The rules are simple and easy to follow. 1000’s of other lenders follow these rules and “self report” when a loan is not done by the rules. Guild did not report for years, assumed they could get away with continuing to fleece the American people and do so benefitting from enormous profits. Now they got caught in a landmark case of fraud, deception, gross misrepresentation and on a massive scale amounting into the 100’s of millions. Guild’s key employees reported to CEO and CEO ignored the fraud, misrepresentation and even “nay sayed” their own auditor who finally had enough and went directly to FHA, something Guild should have done per their agreement with the Government.
    Common sense dictates if you do not like working with the government and running your company according to their rules, then do not enter into business with them. Go out and do just conventional loans like many lenders who have made tactical decisions to not engage in FHA or VA lending. The only VICTIM in this scheme to blatantly and intentionally defraud the Federal Government are we the people, whose tax dollars go to pay for the losses. The only reason we have to have the CFPB and other agencies is to enforce and methodically shut down companies like Guild. If Guild goes away and loses their ability to both originate (Sell) these loans and service them ( Guild makes billions annually servicing FHA and VA loans, meaning they collect the monthly payments for other banks) then this is good riddance for the rest of the mortgage industry. The CEO’s comment that if they go away, then only rich people will be able to buy homes is nonsense. Truth is that many others who compete fairly in the industry will absorb their market share and do business honestly and ethically. Being able to do FHA and VA loans is a privilege and not a right. If Guild does lose their ability to originate these loans, then it will open up opportunities for locally owned smaller banks to pump money back into the San Diego Economy. Guild is no longer a San Diego based or owned company, in fact is is owned by a company in Omaha Nebraska called McCarthy Capital Inc. The profits go to them and are not re-distributed back into the local economy like many believe. Less than 10% ownership is California based. Guild is also alleged to have been sued by their own employees for non payment of wages a practice orchestrated and condoned by CEO and Omaha based investors who have put greed and profits above all else. When employees have to sue Guild to get paid, like in MARTINEZ VS GUILD MORTGAGE, a group of 100 underwriters in a class action lawsuit whose time cards were shaved and altered by managers. This case is public record, filed in SF CA Federal Court. Point is this company will cut any corners including betraying the very people who work for them. The DOJ’s claims are supported not by claims and alleged charges, but are solidified by years of malicious actions imposed on everyone outside of the Senior management team at Guild. Since the advent of the CFPB and the taking away of cheating the consumers, it is now the employees and government who get cheated by Guild to make up for past profits. Guild has no respect for the companies it has piggy backed onto the coat tails of, such as Mutual of Omaha who they partnered with in 2014. They stand to lose incredible market share by being associated with a questionable lender.

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