“Systemic Failure to Protect Texas Homeowners: A Case Study in State Agency Inaction”

We are calling for the dismissal of Fernando Romero & Ian Berry General Cousel of The Texas SML  for failing to Uphold the Texas Constitution They have both failed in their capcity , and NOT protecting the rights of Consumers .

🏠 Exposing EasyKnock & Regulatory Failure: A Call for Accountability

✊ Who We Are

We are homeowners, veterans, families, and advocates demanding accountability from predatory financial actors like EasyKnock and government regulators who’ve failed to protect us. We are fighting against deceptive sale-leaseback schemes that have displaced seniors, disabled individuals, and working families across the country.

🚨 The Crisis: Predatory Equity Theft Disguised as “Help”

EasyKnock markets itself as an alternative to home equity loans. But behind the slogans like “Trapped Equity? Convert It to Cash Without the Loans,” is a darker truth: these are disguised loans designed to evade lending laws.

• Homeowners unknowingly deed their homes away.

• SPVs (like Nese Property Management) are used to launder ownership and obscure liability.

• When tenants fall behind, they’re swiftly evicted—with no foreclosure protections, no restitution, and no equity.

These are not sales—they are unlicensed, exploitative loan transactions violating federal and state laws.

💥 Case Studies

🧍‍♀️ Chedea Neal & Tim Richardson – 

Watauga, TX

• EasyKnock’s partner, Unlock Partnership Solutions, filed a commercial deed against a Texas homestead—without full consent or proper disclosures.

• The transaction was disguised as a sale-leaseback but operated like a non-compliant bridge loan, violating the Texas Constitution (Art. XVI § 50).

• Repairs blamed on the homeowners were proven false by sewer cam footage and confirmed as unpermitted by the City of Watauga.

• Nese Property Management, the SPV involved, operated without registering in Texas until March 2025.

🇺🇸 Mark Johnson – 

Markham, IL

• A disabled veteran evicted from his longtime home.

• EasyKnock sold the property through an LLC, despite promising Mr. Johnson he could remain.

• Now homeless, Mark is living in his car while fighting for justice.

⚖️ Legal Violations

• Truth in Lending Act (TILA)

• Real Estate Settlement Procedures Act (RESPA)

• Texas Constitution – Homestead Protections

• Consumer Protection Statutes

• Civil Rights Violations (targeting protected classes)

Bankruptcy filings even show EasyKnock describing these as loans, directly contradicting their marketing and public claims.

🟥 Regulatory Failure: Romero, SML & Ken Paxton

Fernando Romero – Texas SML

Fernando Romero has repeatedly declined to protect homeowners under the false claim that these transactions are “investor-related,” not consumer-focused—even when marketed directly to vulnerable families.

His failure is not isolated.

🏘️ Terrenos Houston – Colony Ridge Scandal

Romero was also exposed in the Colony Ridge land fraud scandal, where thousands of Hispanic families were deceived into buying uninhabitable land in unzoned areas without disclosures or protections. Victims reported similar regulatory indifference.

Learn more: The Silenced Victims of Terrenos Houston

Ken Paxton – Texas Attorney General

Despite evidence and formal complaints, AG Ken Paxton has not taken enforcement action against EasyKnock, Unlock, or any affiliated SPVs—despite clear violations of Texas Finance Code and the Texas Deceptive Trade Practices Act (DTPA).

🔎 Evidence

• SPVs operating without registration (Nese Property Management)

• Misleading advertising that implies loans (e.g., “qualify,” “cash in exchange for equity”)

• SEC Form D filings showing investor fundraising off residential homes

• $82,000 in political donations by EasyKnock board member David Blumberg to housing and finance lawmakers

• Bankruptcy admissions that these are loan contracts

📣 We Demand

1. Federal and State Investigations into EasyKnock, Unlock Partnership Solutions, TVC Funding, and their legal/financial partners.

2. Immediate injunctions on fraudulent evictions and sale-leasebacks.

3. Restitution and home return for affected homeowners.

4. Public hearings and new legislation to close the regulatory gaps.

5. Accountability for regulators, including Fernando Romero, Ian Berry, and AG Ken Paxton, for failure to protect the public.

🤝 Join the Movement

📄 Sign the Petition

Click here to sign and share

💵 Support Our Legal Defense Fund

Help us fight in court to reclaim our homes and expose corporate fraud. Donate here

📥 Share the Flyer

Click here to download and share — Coming soon!

📚 Learn More

• Victim Impact Statements

• SEC/SPV Map & Disclosures

• Legal Brief: True Sale Doctrine & TILA

🔹 Key Components of a Mortgage:

1. Borrower (Mortgagor) – The person taking out the loan.

2. Lender (Mortgagee) – The bank or financial institution providing the funds.

3. Principal – The amount of money borrowed.

4. Interest – The cost of borrowing, typically expressed as an annual percentage rate (APR).

5. Term – The length of time the borrower has to repay (e.g., 15 or 30 years).

6. Security Instrument – A mortgage or deed of trust that gives the lender rights to the property if the borrower defaults.

🔒 What Happens If You Default:

If the borrower fails to make payments, the lender can foreclose—legally seize and sell the property to recover the debt.

🏠 In Simple Terms:

A mortgage is a loan secured by your home—if you don’t pay, the bank can take the home.

⚠️ Important Distinction:

• A mortgage is not the loan itself—it’s the security agreement that protects the lender.

• The loan is usually called a promissory note or mortgage note—the actual IOU.

       https://statutes.capitol.texas.gov/Docs/FI/pdf/FI.156.pdf

Here are clear legal definitions of the terms loan, credit, mortgage brokers, and lenders — using standard statutory and regulatory sources such as the Truth in Lending Act (TILA), Real Estate Settlement Procedures Act (RESPA), and state/federal finance laws:

📘 

1. Loan

Definition:

A loan is a financial agreement in which a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the money, usually with interest, over time.

Legal Source:

Under TILA (15 U.S.C. § 1602):

“Credit” means the right granted by a creditor to a debtor to defer payment of debt or to incur debt and defer its payment.

A loan is a specific form of credit where a lump sum is advanced, and repayment terms are defined.

📘 

2. Credit

Definition:

Credit is the right to receive something of value now and repay it later, under agreed terms, including interest, fees, and repayment period.

Legal Source:

Per TILA, “credit” means:

“The right granted by a creditor to a debtor to defer payment of a debt or to incur debt and defer its payment.”

Key Characteristics:

• Involves a creditor and debtor

• Terms include repayment, fees, and interest

• Can be revolving (like a credit card) or closed-end (like a mortgage)

📘 

3. Mortgage Broker

Definition:

A mortgage broker is a person or firm who, for compensation, arranges or offers to arrange loans secured by real estate, without lending their own funds.

Legal Source:

Per 12 C.F.R. § 1024.2 (RESPA):

“Mortgage broker means a person (not an employee or exclusive agent of a lender) who brings a borrower and lender together to obtain a mortgage loan.”

Key Facts:

• Does not fund loans directly

• Acts as a middleman between borrower and lender

• Must be licensed (state-by-state)

📘 

4. Lender (Mortgage Lender)

Definition:

A lender is a party (typically a bank, credit union, or private finance company) that provides funds directly to a borrower and takes a security interest in the real estate.

Legal Source:

Per TILA/RESPA and state laws (e.g., Tex. Fin. Code § 342.001):

“Lender” means a person or entity who makes or offers to make a mortgage loan for compensation or gain.

Key Attributes:

• Provides actual loan funds

• May hold lien or sell it via securitization

• Subject to licensing and lending laws

🔹 

Chapter 156 – Residential Mortgage Loan Companies

This chapter regulates:

• Residential mortgage loan originators, brokers, and lenders.

• Licensing requirements for companies and individuals.

• Prohibited conduct like fraud, misrepresentation, or failure to disclose loan terms.

✅ Applies if a company originates or services home loans.

🔹 

Chapter 157 – Mortgage Bankers and Residential Mortgage Loan Originators

This governs:

• Non-depository mortgage bankers (companies that fund home loans but aren’t banks).

• Licensing and registration for individual loan officers.

• Consumer protection rules and enforcement powers.

✅ Often applies to mortgage bankers using warehouse lines of credit or other non-bank funding methods.

🔹 

Chapter 158 – Residential Mortgage Loan Servicers

This chapter applies to:

• Companies that collect loan payments, manage escrow, and enforce mortgages.

• Requirements for registration with SML.

• Consumer protections involving escrow handling, payoff requests, and error resolution.

✅ Applies to loan servicers, including those hired post-origination.

🚨 Accountability Watch: Texas SML Officials Fail to Protect Homeowners from Predatory Sale-Leaseback Schemes

Public Call for Investigation into Fernando Romero and Ian Berry of the Texas Department of Savings and Mortgage Lending (SML)

WATAUGA, TX – [5/19/2025  — Texas homeowners, housing advocates, and consumer rights groups are calling for oversight and accountability following the failure of state regulators to investigate and protect homeowners from predatory sale-leaseback schemes operated by companies such as EasyKnock, Unlock Partnership Solutions, and TVC Funding.

Despite receiving detailed complaints supported by legal evidence, Fernando Romero, a representative of the Texas Department of Savings and Mortgage Lending (SML), dismissed the matter—claiming that the agency does not regulate “investor loans.” Ian Berry, another representative of the agency, has also failed to initiate a meaningful investigation into the widespread abuse of home equity through disguised credit transactions.

🔎 Key Issues Raised Against Romero and Berry

• Improper Dismissal of Consumer Complaints
  Romero’s response disregarded Texas homeowners’ rights under Texas Constitution Article XVI, Section 50, and ignored clear indicators that the transactions at issue were disguised home equity loans, not sales.

• Failure to Investigate Unlicensed Lending Activity
  Numerous sale-leaseback contracts by EasyKnock and its affiliates function as home equity loans, which fall under SML’s purview. Yet, Berry and Romero failed to refer the matter to SML’s legal enforcement division, despite evidence of consumer harm, misrepresentation, and TILA violations.

• Neglect of Federal Guidance and Case Law
  The CFPB, courts, and even bankruptcy proceedings have affirmed that leaseback arrangements that resemble loans must be regulated as such, and Truth in Lending Act (TILA) protections must apply. The officials ignored this precedent.

• No Response to Federal and Congressional Concerns
  While Senator Elizabeth Warren and consumer watchdogs have raised concerns about EasyKnock’s business model, Romero and Berry have failed to act or respond transparently.

🏚️ Real Victims, Real Harm

Chedea Neal & Tim Richardson — Watauga, Texas

A Texas homestead was transferred to a Delaware LLC backed by Wall Street investors without proper disclosures or constitutional compliance. TVC Funding, EasyKnock’s SPV, filed a deed against the home as a “sale,” but continued collecting “rent” — acting in every respect like a mortgage lender. Repairs were conducted by Nese Property Management, an unregistered LLC at the time, with no permits pulled — leaving the family without working plumbing.

Mark Johnson — Markham, Illinois

A disabled veteran was evicted after EasyKnock promised he could stay in his home. The company sold the deed to a private LLC and used a local realtor to list it for profit. Mark is now living in his car with COPD and diabetes, ignored by both courts and regulators.

💬 Statement from Affected Homeowners

“We submitted complaints supported by evidence, contracts, photos, and legal precedent. These officials brushed it off. That’s not regulation—that’s abandonment. We are demanding accountability.”

— Chedea Neal, homeowner and consumer advocate

⚖️  What We’re Demanding

1. Independent Oversight:
   A formal investigation into SML’s mishandling of complaints and its failure to regulate predatory residential sale-leaseback schemes.

2. Public Testimony:
   That Mr. Romero and Mr. Berry testify before the Texas Legislature and/or federal agencies on why they failed to act in light of overwhelming consumer harm.

3. Federal Review by the Inspector General:
   Referral of the matter to the Office of Inspector General, CFPB, and HUD for review of regulatory failures and possible conflicts of interest.

4. Transparency and Reform:
   That Texas updates its interpretation of residential equity abuse and closes regulatory loopholes being exploited under the guise of “investor transactions.”

📝 How You Can Help

• Sign the Petition: https://www.change.org/Fightingek76148 

• Submit a Complaint: File your story with the CFPB, HUD, or Texas Attorney General.

• Contact the Media: Help us expose this injustice by sharing your story or this release.

📢 This is not just a Texas problem. It’s a national housing crisis masked as “innovation.” It’s time for the regulators to do their job—or be held accountable.

• 🚨Update : 06/07/2025  

• Stacy G. London & Regulatory Overlap with Fairway CFPB Enforcement

• 🧑‍💼 Who is Stacy G. London?

• Position: President, Houston Capital Mortgage

• Past Roles:
  
  
  

• Member, Texas Savings & Mortgage Lending Advisory Board (oversight body for the Texas Department of Savings and Mortgage Lending – SML)

• Director/member in both Texas Mortgage Bankers Association (TMBA) and Houston MBA

• 
  

• Credentials:
  
  
  

• Certified Mortgage Consultant (CMC)

• MBA, University of Houston

• 
  

• 🏛️ Regulatory History & CFPB Enforcement

• ⚠️ 

• Fairway Independent Mortgage Corporation

• CFPB Enforcement Action (2023)

• Violation Summary:
  
  
  

  • Illegally withholding information from consumers

  • Interfering with consumer rights to post reviews

  • Attempted to use non-disparagement clauses in mortgage documentation

• 
  

• Penalty: $2.7 million civil money penalty

🔗 Why This Matters:

1. 

Fairway Was Disciplined at the Federal Level

But continued operating freely in Texas — a state where Stacy London held regulatory sway and influence.

2. 

Potential Regulatory Favoritism or Inaction

Stacy G. London’s past influence at the Texas SML Advisory Board (which oversees lender compliance in TX) overlaps with:

• Entities implicated in national-level consumer harm

• Ongoing unlicensed or deceptive activity (as you’re investigating with EasyKnock & related shell structures)

3. 

Houston Capital Mortgage

 could have 

industry ties to Fairway

Through:

• Wholesale lending

• Shared membership in TMBA

• Mortgage banker political advocacy networks (which often work to reduce oversight)