I was a long time employee of Loan Safe and the related law firms until recently. I will state indisputable facts in this post. Moe Bedard can try to justify his actions or give his own spin, but any reader can easily verify this information.
California law requires companies acting as loan modification processing companies be affiliated with a Licensed Real Estate Broker in the State of California. Loan Safe has no such affiliation.
California law requires that the individuals acting in the capacity of "negotiator" have a valid California Real Estate Salespersons License. This person has conversation with the homeowner and the bank, relaying terms, paperwork requirements, proposed mortgage payments, etc. Loan Safe's negotiators/processors are not licensed real estate salespersons.
The above information can be verified at the California DRE website.
One of the reasons that Loan Safe does not have a broker's license is that Moe Bedard, aka Maurice Clement Bedard Jr. is a convicted felon and had his salespersons license REVOKED by the DRE on August 8, 2005. The revoked license number is 01237996. You can look this up on the net or call the DRE in Sacramento to verify.
The reason his licensed was revoked is that his felony convictions involved "moral turpitude". Wikipedia defines "moral turpitude" as a legal concept in the United States that refers to "conduct that is considered contrary to community standards of justice, honesty or good morals."
Case #1 Riverside County Superior Court RIF108001
1 HS 11359 Felony Poss of Marijuana for Sale 01/02/2003 GUILTY CONVICTED
Case #2 Riverside County Superior Court RIF118953
1 PC 273.5(E) Felony Corporal Injury on Spouse/Cohabitant 08/26/2004 GUILTY CONVICTED
Case #3 Riverside County Superior Court RIM431684
1 PC 243(E)(1) Misdemeanor Battery on Spouse/CoHabit/Pare 02/11/2003 GUILTY CONVICTED
On November 23, 2004 Maurice "Moe" Bedard was sentenced to 2 years in State Prison, (less 66 days time served). Remanded to custody of Riverside County Sheriff, subsequently transported to California Rehabilitation Center in Norco, CA.
Soon after he got out of prison, Moe began working on the idea of Loan Safe in early 2007. The website loansafe.org went live that summer. The actual "for profit" business of Loan Safe Solutions opened to the public in May 2008. Moe makes claims that loansafe.org is a "not for profit" (same as non-profit), however the company is not registered with the IRS as a 501(c)(3) Non-profit organization.
The website loansafe.org, is actually an extremely good source of information for distressed homeowners to help themselves with the support of the loansafe community of volunteers. For homeowners who want help from an attorney, Loansafe.org has their "selected" attorney or law firm advertise on their site for a marketing fee which is paid to Loan Safe Solutions. A portion of EVERY retainer fee collected by the law firm which got the lead from Loansafe.org is paid to Loan Safe Solutions.
The Law Offices and Loan Safe Solutions are separate entities. However, Moe calls the shots at both. The attorneys do their attorney work, but regarding policies & procedures for Loan Safe cases, we all know Moe is basically in charge.
Once the fee has been paid by the homeowner and the required paperwork has been exchanged and received by the salesperson aka "Mortgage Investigator", the case is then handed over to Loan Safe Solutions for the forensic auditing and processing of the modification with the lender. The "Forensic Loan Audit" may or may not play a part in the negotiations with the lender. As the Federal Loan Modification programs become generally accepted by the lenders, the audit will become unnecessary in most cases.
While the case is being processed at Loan Safe Solutions, the auditing staff of 2 young ladies, probably no more than 24 years old and each with just a few years experience in the RE business review the old loan for violations and prepare the loan audit. Neither one of these persons have Real Estate Salesperson licenses.
The processing staff of just 2 people as of last Friday, prepare the submission of the loan modification file to the lender. Neither one of these persons have Real Estate Salesperson licenses. It is the job of the processing staff to submit the file to the lender and to follow the progress of the case with the lender's loss mitigation agent. The processor/negotiator person discusses information and terms of proposals between the homeowner and loss mitigation person at the lender.
You may have noticed that there has not yet been an attorney involved in the case. As a practical matter, the attorney who is assigned to these cases is a young man who just graduated from law school and passed the bar within the last 2 years. The supervising attorneys were admitted to the bar in June 2005 and June 2006. The attorney assigned to a case may or may not review the file in the early stages and talk with the homeowner on the phone. The attorney generally make the final call to discuss the proposed modification with the homeowner and will advise them as appropriate.
At this point, it would be helpful for the reader to understand the layout of the offices and the relationship to the law firms. Loan Safe Solutions occupies a leased building in Corona. There is approximately 6, 000 sq. ft. of office space. On 1 side of the building the Loan Safe Solutions corporate staff and support personnel have offices. The other side of the building is the "Law Office" staff, the actual attorney office and processing. There is no physical separation between Loan Safe Solutions and the Law Office sales staff. The salespeople "Mortgage Investigators" used to occupy about 30 cubicles. The attorney has a separate locked office. The Law Office personnel and Loan Safe Solutions personnel can freely move about the shared office space. In fact, the phone lines that come in are answered by persons employed by Loan Safe and they can transfer to either Loan Safe or the Law Offices.
In the building adjacent to Loan Safe, there is another law office which feeds cases to Loan Safe Solutions.
In September 2008, the very experienced and savvy B2B Sales Manager left the company over growing frustration over cases not being handled properly and the huge increase in complaint calls from brokers and homeowners.
In September 2008, Moe abruptly shut down the "B2B" division of Loan Safe and laid off almost all of the sales staff.
In September 2008 the original Law Firm #1 ceased taking on Loan Safe cases. Law Firm #2 was created.
In November, the V.P. of Operations suddenly resigned, citing dissatisfaction with the processing method as being overly complicated and time consuming. Moe's frequent verbal abuses of the personnel was also a contributing factor to resigning.
Loan Safe Solutions received a trademark infringement complaint in late 2008 initiated by First American Title Company. First American has a division called Corelogic which has had a product on the market for many years called LoanSafe 2.0. The complaint alleges trademark infringement of the LoanSafe trademark by Loan Safe Solutions. As yet, unresolved.
In January 2009, the CEO of Loan Safe left the operation due to differences of opinion on the proper operation of the business.
In late February 2009, the corporate attorney for Loan Safe was all of a sudden not at work. Who knows?
In late February, Law Firm #2 ceased taking on new business from Loan Safe. Law Firm relationship #3 was established.
In early March 2009, almost all of the 25+ sales people "Mortgage Investigators" were fired.
Last week, everyone in processing (except 2) and everyone in auditing (except 2) were fired.
A little over 3 weeks ago, Moe made an announcement to management that he was considering selling Loan Safe. Unknown at this point if any action has been taken.
Homeowners who are researching loan modifications should do their own due diligence, make wise decisions and are advised to not rely solely on this information for making their decisions.
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