NewDay Coming to WPB
Posted by Sandy on March 18, 2021 · Leave a Comment
The previous story “WPB to Receive Windfall” Mayor James stated.
“Mayor Keith James said during the pandemic the city experienced revenue losses of $7 million and spent about $2 million on testing, PPE and overtime. He said the city is $10 million short of its projected 2021 budget.”
The story by Alexandra Clough, Palm Beach Post, wrote a very informative story on Mortgage lender NewDay USA, and may explain why as James has stated the city has a shortfall of $10 million.
Below are excerpts from the story, and the entire story can be found below. The city did not release the name of the company and I’m betting they didn’t want people to google NewDay USA and learn about their record. The company’s identity was revealed by the Palm Beach Post last month.
“Mortgage lender confirms expansion to West Palm Beach, will bring 600 jobs; company’s average salary is over $90K”
“Mortgage lender NewDay USA on Tuesday confirmed plans to create a headquarters in West Palm Beach, bringing 600 new jobs in one of the largest corporate deals to land in Palm Beach County in years.”
“The NewDay USA location is a second headquarters for the mortgage lender, which originates refinance mortgage loans guaranteed by the Veterans Administration. The company is expected to maintain its Fulton, Md., offices.”
“In recent years, the company has tangled with national and state regulators of mortgage loans, on issues ranging from cheating to loan churning.The company surrendered its license in New York state in 2015 after it ran afoul of regulators for cheating on exams.”
“Rob Posner, chief executive of NewDay USA, said in a statement that the area was attractive because of its large population of veterans.”
“Last July, Posner paid $19.8 million for a home at 230 N. Ocean Boulevard, according to Palm Beach County property records.” It appears to me Posner was guaranteed a warm welcome 8 months ago when he purchased his Palm Beach home. James was mayor at the time.
“In recent years, NewDay’s business practices have netted the company heightened scrutiny, and sometimes action, from federal and state regulators of mortgage loans.”
“In 2015, New Day Financial, which does business as NewDay USA, was ordered to pay a $1 million penalty to the New York Department of Financial Services. The company elected to surrender its mortgage banker’s license to do business in the state. “
“This action came after NewDay USA employees, including senior executives, engaged in a scheme to cheat on state-required continuing education courses and exams, Housingwire.com reported.”
“Earlier that year, the Multi-State Mortgage Committee, a group that coordinates state systems of mortgage regulation, announced a settlement involving 43 state mortgage regulators and NewDay.”
“In 2018, NewDay and another Department of Veterans affairs lender also were temporarily restricted from participating in a Ginnie Mae mortgage-backed securitization program due to loan churning, which is a form of refinancing in which the borrower appears to benefit but does not. Although an interest rate might be lower, the fees attached to the deal can increase the overall loan amount, meaning it could take years for a homeowner to reap any benefit from a refinance.”
“Housingwire.com reported that the move was part of the federal agency’s effort to control a rise in mortgage lenders that were aggressively targeting service members and military veterans for quick and potentially risky mortgage refinances.”
“The West Palm Beach Community Redevelopment Agency recently approved $1.8 million for the training of new hires at NewDay University.”
The WPB City Commissioners act as the CRA board and why did they approve a $1.8 million tax payer dollars for training new employees (600) at the NewDay University? Mortgage lender NewDay USA has opened a university, and the taxpayers will pay to train their new employees. Good deal for NewDay, not good for WPB taxpayers.
This deal is right up there with James & commissioners who approved a new contract with PSC Securities which rose from $8.9 million to $9.5 million dollars. When James was questioned about the increase his response was the cost of living increase was due to increase to $15.00/hour. WPB taxpayers paid to increase paychecks for PSC employees.
Good deal for PSC, not good for WPB taxpayers or the WPB Police Dept. who has worked without a new contract since Sept. 2020.