Why are the National Association of Mortgage Brokers’s (NAMB’s) Mike Anderson and MBA‘s Dave Stevens talking at the NAMB convention?
When Will the Mortgage Industy Start Revoking Licences – Second NAMB President Signs Consent Agreement with PA Department of Banking Bureau Compliance Investigation & Licencing for Violating and doing Unethical Loans
Michael D'Alonzo Company was caught doing fraudulent FHA Loans but yet NAMB voted him in president - How corrupt is the system if this man is looked at as a leader? When will ethics be valued more, rather than cronyism
Current National Association of Mortgage Brokers (namb.org) President Michael D’Alonzo and his company, Creative Mortgage signed a consent agreement with the Commonwealth of Pennsylvania for violations of the Real Estate Settlement Procedures Act and the Pennsylvania Mortgage Licensing Act.
The state alleged that on 18 occasions Creative Mortgage, Michael D’Alonzo owned company, a non FHA-approved mortgage broker, submitted FHA insured mortgage loan applications to an FHA-approved broker and received compensation. Consumers were to have allegedly paid over $84,000 in excessive and/or unearned fees payable to Creative Mortgage.
D’Alonzo is the second President of NAMB to be in trouble with the Commonwealth of PA. Earlier this year, George Hanzimanolis signed a consent decree with the state. Details of his agreement can be found HERE.
D’Alonzo in an article in the National Mortgage News had this to say about Hanzimanolis:
The editor asked
” Has there been anyone in particular you have looked up to as a mentor in the industry?“
Michael D’Alonzo responded with
“Yes, it would be my longtime friend, George Hanzimanolis. Any time I have questions or second guess myself, I call George. He’s always been the voice of reason for me, and he’s probably one of the best presidents that NAMB has ever had. He always keeps me grounded with his advice.“
Both D’Alonzo and Hanzimanolis continue to be licensed for mortgage originations in Pennsylvania among others that have done fraudulent business practices. When will the mortgage industry start revoking licenses? What will it take? How many people need to be scammed?
Can the Mortgage Professionals Tell Me Who Owns NAMB Enterprises, LLC?
Or is NAMB Enterprises, LLC a secret society dedicated to the promotion of unethical practices? Perhaps the facts, as we find them, will speak for themselves.
Mortgage Professionals: please help me put the puzzle together. Post any relevant factual information you have in the comment section. Here is what I have unraveled so far…
NAMB Enterprises, LLC was registered in Delaware in May 2007. Other than the Delaware registered agent, no other names are listed on the filings. Suspicious? Stay with me, it gets even better.
When NAMB Enterprises, LLC was formed Roy Deloach indicated to others in the industry that Directors for NAMB Enterprises, LLC would be a revolving list. Roy also said that its Board would be made up of himself, the President and Immediate Past President. And he said it was a wholly owned subsidiary of NAMB.
The LLC filing doesn’t show NAMB or any organization as a parent, which makes NAMB Enterprises a standalone organization.
My presumption, unless they can prove otherwise, is that Roy and George Hanzimanolis have been continually involved in running the LLC since it was formed.
If Roy has been running NAMB Enterprises, LLC since 2007, doesn’t that discredit his statement that “ Directors for NAMB Enterprises, LLC would be a revolving list?”
These two are factually tied to NAMB Enterprises, LLC. Are there others? I have heard that a man by the name of James Pair may be as well, but have not seen verification of that yet. Last week discovered on a LinkedIn John Councilman is the Treasurer and FHA Chairman at NAMB and was asked by others on LinkedIn for financial information for NAMB Enterprises LLC but he shamefully attacked others rather then compling.
The facts I have come up with include that NAMB 990’s make no reference to NAMB Enterprises, LLC as a profit subsidiary. No other records, financial or otherwise, have been found or produced.
Accusations and attacks against anyone asking for financial information from NAMB Officials about NAMB Enterprises LLC seems to be common. If you are reading this and have NAMB Enterprises, LLC financial documents, please post them publicly for both NAMB members and non-NAMB members to see. I want to see bank statements, tax returns or evidence that there is a checking account and, if so, who is authorized to sign the checks. How much did the LLC earn? Who was paid out of the LLC?
Apparently when NAMB officials discussed Roy’s compensation options a year ago Roy offered to accept a third of NAMB Enterprises, LLC as part of his package. What does that tell us intuitively? NAMB Enterprises, LLC is making money! Why else would anyone offer to accept part of it as compensation?
If I was a board member at NAMB I would be very concerned. If NAMB Enterprises, LLC, or those controlling it have committed any type of fraud, director liability insurance will probably not cover it. Which could lead to innocent people being blamed for others actions.
Why board members should be worried? NAMB itself refuses to release any financials. They say it is because they are involved in a lawsuit and do not want the plaintiffs to know the scope of their assets. This makes for a great excuse to hide financials from members. If the lawsuit argument is not legitimate, every board member may be personally liable for intentional concealment of assets
People outside of NAMB are probably wondering who Roy DeLoach is, if you don’t know of him already. In addition to his NAMB Enterprises, LLC dealings, he has cushy $30K a quarter lobbying job from NAMB, is a married man who dabbles in infidelity (he would likely argue differently but as journalist we have had this statement verified by several within NAMB and outside of NAMB) and is a close friend of George Hanzimanolis.
George doesn’t have the highest morals, has been featured on this blog before. He is best known for getting caught paying illegal referral fees (George called them consulting fees) to unlicensed loan officers, while being the President of the National Association of Mortgage Brokers. George then negotiated a consent order agreeing to restitution, heavy fines and a 6 month suspension of his license. George denied violating the law… 37 TIMES!! And why has NAMB not kicked him out for violating the NAMB Code of Ethics?
Each person can make their own judgment on Roy’s and George’s ethical or unethical judgment based on how they handle themselves, but the facts make it clear to me where they and NAMB stands.
Once again I would be happy for NAMB and non-NAMB members to post any further information below in the comment section.
Former NAMB President Reaches Plea Deal with PA Department of Banking
George Hanzimanolis Former NAMB President
Former National Association of Mortgage Brokers (www. namb.org) President George Hanzimanolis reached a plea bargain with the Commonwealth of Pennsylvania on allegations that Mr. Hanzimanolis and his company Northeast Financial Consultants, Inc violated the Real Estate Settlement Procedures Act (RESPA), the Mortgage Licensing Act and the MBBCEPA.
The Banking Department alleged that on at least 37 occasions from January 2008 through December 2009, Mr. Hanzimanolis’ mortgage company submitted FHA insured mortgage loan applications which were originated by 11 different non FHA mortgage brokers. Mr. Hanzimanolis was the President of the National Association of Mortgage Brokers during this time.
The allegations continue to say that Hanzimanolis’ company would re-type the application and put their own name on the application and submit the loans for approval based on the allegation that they took the loan app and not the approved brokers.
Hanzimanolis then paid the non-approved brokers on the HUD-1 settlement sheet listing a charge called consulting fees.
These allegations are in violation of the Pennsylvania Mortgage Licensing Act.
Mr. Hanzimanolis consented to pay restitution of $145,457.45 to consumers and pay a fine of $191,000 for the violations. Mr. Hanzimanolis can reduce the fine to $63,333 if certain conditions are met.
Hanzimanolis and his company also agreed that his mortgage company have a suspension of their license for 6 months: all but 5 days will be held in abeyance provided Hanzimanolis remains in full compliance with the Order in all respects.
Mr. Hanzimanolis was named Broker of the Year by NAMB, served as the NAMB Nominating Committee Chair has testified in front of Congress and has served as President of the Pennsylvania Association of Mortgage Brokers (PAMB.org).
To read the full agreement, please go to https://www.dailyproperties.com/docs/GH.pdf