Loan Officer Winston
Loan OfficerForum Replies Created
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A Mortgage Company’s Eligibility as an FHA Correspondent Lender Depends on Whether It Compensates Loan Officers as W-2 Employees or 1099 Independent Contractors.
A mortgage brokerage faced compliance issues for compensating the same individual as both a W-2 employee and a 1099 contractor.
In this case, some loan officers were classified as W-2 employees while others were designated as 1099 independent contractors, based on state regulations and specific job responsibilities.
Some individuals simultaneously held W-2 employee positions and received 1099 income for loan origination activities as independent contractors.
Subsequently, the company underwent an IRS audit that examined worker classification rather than unpaid taxes. The IRS inquired about individuals who were classified as both employees and independent contractors.
The company explained that certain states mandated W-2 employment, while others permitted 1099 independent contractor arrangements. Some employees performed both operational tasks and loan origination.
What the IRS Audit Found of MLOs Being Paid as 1099 and W2 Wage Earners
Following the audit, the IRS determined that an individual cannot simultaneously be classified as a W-2 employee and a 1099 independent contractor. Consequently, the company incurred substantial financial liabilities and penalties.
NMLS sponsorship presents additional challenges.
When sponsoring a mortgage loan originator, a company must designate the individual as either a W-2 employee or a 1099 independent contractor. Dual listing may result in errors within the NMLS system.
Since NMLS sponsorship is a formal statement, the company must ensure its pay and employment setup matches what it reports. Listing an MLO as a W-2 in NMLS but paying them as a 1099 will cause compliance problems.
This situation does not indicate that the FHA rejects all companies employing 1099 loan officers. Rather, it underscores the necessity for companies to thoroughly review NMLS sponsorship, state regulations, tax classifications, and FHA lending requirements prior to application. Consulting a compliance attorney, employment tax specialist, and relevant FHA or HUD representatives for written guidance is essential. Employee misclassification can result in significant consequences. The issue is primarily operational and compliance-related, not a universal prohibition for all lenders.
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The best compensation is usually not “which brand pays the most on paper.” It is which model leaves you with the highest net income after fees, payroll structure, pricing competitiveness, support costs, licensing overhead, compliance burden, and lead flow. Based on publicly available information, Loan Factory is the clearest flat-fee model, NEXA is the clearest high-bps/high-independence net-branch style model, and C2 appears stronger on platform breadth and channel flexibility than on publicly posted comp specifics. UMortgage, Barrett Financial, and Coast2Coast/C2C may still be good fits, but from what I found, their public pages are much less transparent on exact comp than Loan Factory or NEXA.
Here Is The Blunt Answer:
If you already produce consistently, want full control, and can handle compliance and operations, opening your own mortgage broker company usually wins long term. You keep the economics, control your comp plan, own the brand, own the recruits, and are not exposed to a parent company changing terms or strategy. But you also take on licensing, state maintenance, insurance, payroll, accounting, QC, compliance, audits, vendor contracts, and management risk.
If you want to maximize take-home pay without building full infrastructure yet, a true flat-fee or very high-split platform is usually better than a traditional branch split. That is why Loan Factory and NEXA stand out in the public info. Loan Factory says its 1099 model pays 100% commission with a $595 flat admin fee plus $500 processing fee per closed loan, and says it charges no monthly software fees. NEXA publicly promotes 220–275 bps and also publicized a NEXA100 structure where LOs can keep up to 100% of commission splits under stated conditions.
That means the real question is this:
Open your own broker shop vs. join a net branch
Open your own mortgage broker company is better when:
You already have stable self-generated volume, maybe 3 to 5+ funded loans a month, or a small team that can move with you. At that point, giving away branch override, corporate margin, and recruit economics often costs more than running your own company.
You also avoid the risk of a parent platform changing comp, support, or pricing later. The tradeoff is that you must build real infrastructure and be willing to be the one responsible when compliance, payroll, E&O, audits, licensing, and post-closing issues hit.
CFPB loan originator compensation rules also still apply, so you need compliant comp design from day one.
A net branch or large broker platform is better when:
You want speed to market, easier state expansion, plug-and-play LOS/POS/CRM, payroll handling, compliance support, recruiting help, and lender approvals already in place.
This is usually smartest for an LO or team that wants independence without building the whole back office yet.
It is also safer if your production is inconsistent, because opening your own company creates fixed expenses whether or not you close loans.
Which compensation model is usually best
Best pure economics for many self-sourced producers: flat-fee
A flat-fee model is often best if your average loan size is solid and you self-source most of your business. Why? Because on a large loan, a flat fee hurts less than a 10%, 20%, or 30% split. Loan Factory’s public structure is the easiest example: 100% commission, then fixed per-file fees. On a $500,000 loan with 100 bps gross comp, you generate $5,000. After $595 admin and $500 processing, you net about $3,905 before taxes and your own overhead.
Best for high producers who want recruiting upside: high-bps / net-branch style
NEXA’s publicly advertised 220–275 bps and NEXA100 messaging are aimed at producers who want very high comp and branch-style independence. That can beat flat-fee economics in the right setup, especially if you control pricing well, recruit, and close enough volume to satisfy plan terms. But you need to model it carefully because “high bps” does not automatically mean best borrower pricing or best net profitability. Sometimes the highest comp plan makes your rates less competitive.
Best for balanced support and broad lender access: platform model
C2 publicly emphasizes roughly 100 wholesale lenders, a broker channel plus a mini-correspondent channel, support specialists, Slack/community support, and that it does not “pad or splice” pricing. That is attractive if you want optionality and maturity of platform, even though I did not find exact comp numbers posted on the pages I checked.
My take on the companies you named
Loan Factory
Best fit if your main priority is transparent flat-fee economics and you want to keep most of your revenue. Their public page says 1099 LOs get 100% commission, with $595 admin and $500 processing per file, plus free tech and no monthly software fees. That is excellent for experienced self-generators and teams that do not want desk-fee nonsense. Weak point: you need to judge whether the support, lender mix, and brand fit your style.
NEXA
Best fit if you want maximum independence, high bps, fast pay, and big-broker scale. NEXA’s public recruiting pages say 220–275 bps, daily payroll turnaround, and support, while outside coverage reported the NEXA100 plan offering up to 100% of commission splits without per-file fees under the stated plan. That is strong on paper. The main caution is that very aggressive comp models need very careful testing against real rate sheets, support responsiveness, and branch politics.
C2 Financial
Best fit if you want a large, established broker platform with both broker and mini-correspondent options, broad lender access, and mature support/community. C2 says it has about 100 wholesale lenders, offers 1099 in most states but W-2 in some, and passes along preferred pricing without padding/splicing. I did not find exact public comp numbers in the pages reviewed, so I would not assume it beats NEXA or Loan Factory on take-home pay without seeing an actual comp sheet.
UMortgage
Public recruiting info I found highlighted weekly pay cycle and referral bonus language, but I did not find a clear public comp schedule in the pages surfaced. That does not mean the comp is bad. It means you should demand a written branch economics sheet before making any decision.
Barrett Financial
I found Barrett careers pages and consumer pages, but I did not find a clean public comp page with branch economics. Same conclusion: possible good platform, but not transparent enough publicly for me to call it “best compensation.”
C2C Mortgage Lending / Coast2Coast Mortgage
I found the company site, but not a usable public breakdown of LO or branch compensation. I would put this in the “only evaluate if they give you a written P&L and fee sheet” bucket.
What is “better” in practice
For most experienced producers, the ranking usually looks like this:
Best long-term wealth:
Open your own broker company.
Best short-to-medium-term net income without building infrastructure:
A flat-fee model like Loan Factory, or a very high-split platform like NEXA, depending on your volume and pricing sensitivity.
Best if you want stability, broad lender access, support, and less operational headache:
C2, and possibly Mortgage or Barrett if their private offer is strong enough.My direct recommendation
My honest recommendation:
Open your own mortgage broker company if all 4 are true:
You already have repeat referral partners or self-generated business, you close enough volume to cover fixed overhead comfortably, you want to recruit under your own brand, and you are willing to own compliance and operations.
Join a high-independence platform instead if even 1 of these is false.
And if you join a platform, based on public information alone:
For pure comp transparency: Loan Factory
For aggressive high-split independence: NEXA
For broader institutional platform feel: C2The one mistake not to make
Do not choose based on headline bps alone. Because mortgage broker compensation is constrained by CFPB loan originator compensation and anti-steering rules, your comp plan has to work inside a compliant structure, and a higher comp plan can still lose if borrower pricing gets worse, support is weak, or corporate fees show up elsewhere.
What you should compare before signing anywhere
Get each company to give you these in writing:
- Gross comp plan, branch override, admin/per-file fees, processing fees, payroll taxes treatment, tech fees, compliance fees, E&O, state license help, who owns recruits, who owns the database, exit restrictions, non-solicit terms, lender count, pricing markup policy, and what happens if the company is sold or restructures.
My bottom line:
If you want the safest, smartest long-term move and you have real production, open your own mortgage broker company.
If you want the best current plug-and-play comp, start by modeling Loan Factory and NEXA side by side. -
What if America backed its debt with gold again?
In this powerful episode, economist and former Federal Reserve nominee Judy Shelton shares her bold vision for restoring trust in U.S. money. From a historic rethink of the Treasury’s role, to issuing gold-convertible “Trust Bonds” timed to America’s 300th anniversary, Shelton challenges decades of monetary policy and calls for a return to lasting value.
Earn Interest on Your Gold and Silver with Monetary Metals.
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ICE arrested NYC Comptroller and mayoral candidate Brad Lander after interfering in an immigration enforcement operation inside a federal courthouse. Letitia James issued a fiery statement, Kathy Hochul vowed $50 million to help illegal immigrants, and DHS officials called it what it was: 15 minutes of fame.
Why Brad Lander Was Arrested
City Council member Brad Lander found himself handcuffed after an early-morning run outside a Brooklyn immigration court. Federal agents accused him of shoving an officer and blocking a deportation escort. Local cameras rolled, making the whole episode feel heavier than it perhaps was.
Some critics later said the feds had a clear reason to snap the cuffs. Charging papers never materialized, Mrs. Lander cycled home the same afternoon, and the file quietly vanished.
That quick release left plenty of folks saying the stunt looked worse in daylight than it was. Still, no one could pretend the outburst fell under the civil disobedience banner, and, for 60 frantic minutes, the arrest itself seemed perfectly understandable.
Hochul’s $50 Million promise
Governor Kathy Hochul pledged $50 million to help New Yorkers locked in deportation fights, and the promise is already grabbing headlines. The cash is supposed to buy lawyers who can step in fast when ICE shows up, a move many immigrants have been begging for ever since enforcement ramped up last year. Skeptics still whisper that the money looks more like a campaign photo-op than a real safety net, and they may not be wrong. Even so, cash on the table beats no cash at all.
How the state parcels out those dollars will tell the real story; that piece is still a question mark. If the grants land in trusted community groups instead of paperwork-heavy intermediaries, many people may finally get the legal help they couldn’t afford last month. For now, though, the promise sounds like support, critics admit the signal is hard to ignore.
Do you think Brad Lander’s arrest was justified?
What are your thoughts on Hochul’s promised $50 million to combat deportations?
Let us know in the comments.
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New York Attorney General Letitia James is now investigating local sheriffs for cooperating with ICE during the Trump administration. Her office claims the investigation is about “civil rights.” Critics say it’s a political hit job against law enforcement.
And, NYC Comptroller and mayoral candidate Brad Lander was handcuffed and detained by ICE agents after intervening in an immigration court case.
Should State Officials Look into Local Sheriffs? Investigating Local Sheriffs by State Officials
State officials can, and sometimes must, check in on local sheriffs if they are teaming up with ICE.
The idea is simple: someone at the state level must ensure county cops follow state law. When sheriffs share info with immigration agents, the risk of civil rights violations goes up.
New York Attorney General Letitia James used that power by watching how a handful of sheriffs cooperated with ICE. Her move raised eyebrows but stayed well within the lane of civil-rights oversight.
Motivation Behind Letitia James’ Investigation
New Yorkers are asking why their attorney general is probing local sheriffs. Is this a move to guard civil rights, or is it just another round of political payback?
James claims she is checking whether county jails are quietly handing over people to ICE without due process. Her office describes the review as a way to keep law enforcement fair and to stop discrimination at the border between state rules and federal demands. The attorney general has spent years siding publicly with immigrant groups and railing against what she calls overreach by federal border agents. Critics still whisper that the timing and the spotlight on her may hint at career-building theatrics. Yet, her statement on the table keeps circling back to protecting basic civil liberties.
Should state officials be allowed to investigate local sheriffs for cooperating with ICE?
Do you believe Letitia James is acting in the interest of civil rights, or is this just political retaliation?
Let us know in the comments!!!
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For years, corrupt HOA boards across Florida have terrorized homeowners with outrageous fee increases, fraudulent special assessments, and zero accountability.
Florida Residents Say Enough Is Enough After Sky-High HOA Charges
Many Florida homeowners watched board members boost fees and shuffle money around for a long stretch with barely a word of warning. A sudden 17.2% bump in Tampa dues blindfolded one neighborhood. A jaw-dropping $6 million embezzlement case sent ripples through a luxury tower in Miami. Meanwhile, Baldwin Park, Orlando, slammed its street with a dizzying 300% overnight jump, pinning families with $1,222 a month to keep the front door unlocked.
Now, faces that once stayed quiet are lining up at public microphones and demanding clear answers. Investigators have opened files. Fresh lawsuits stack like overdue mail on courthouse desks. Lawmakers down in Tallahassee are hearing the shouts and feeling the pressure to rewrite rules that have let boards run loose. If this keeps up, how HOAs do business in Florida could flip on a dime.
From Tampa’s shocking 17.2% fee hikes to Miami’s $6 MILLION theft scandal, Florida residents have been trapped in a nightmare of HOA issues. Baldwin Park Orlando residents got jammed overnight with a 300% fee increase – now paying $1,222 monthly! But the system is finally cracking, and homeowners are fighting back. This will change everything!
Florida’s HOA mess has finally hit a boiling point. Homeowners are suddenly slapped with crazy fee jumps, surprise special assessments, and even whispers of fraud, and you can feel the anger all around the state.
The crisis isn’t just bad luck; it’s a crowded mix of new rules, poor bookkeeping, and, in some cases, flat-out corruption by the boards that are supposed to manage things. Residents watch the drama unfold and wonder how the people in charge lost control in the first place. Here’s a quick rundown of what went wrong, what is happening this week, and where the story might head next.
The Core Problems: Skyrocketing Fees and Assessments
- Tampa residents are still reeling from a fresh, gut-punch 17.2% HOA fee spike that Redfin just flagged.
- That kind of jump has locals whispering, “Who’s checking the math on my bill?”
- The pain can be traced back to the Champlain Towers South disaster in June 2021, when 98 lives were lost, and lawmakers felt the floor give out under their own feet.
- Senate Bill 4-D orders condo boards with three-story buildings to lock in milestone inspections and build cash reserves by 2024.
- Complying means bumping monthly dues or slapping everyone with a special assessment no one budgets for.
- In Rumors swirl in Baldwin Park, fees have soared 300% overnight to a hair-raising $1,222.
- Nobody has yet signed off on that figure, but if it holds up, the math looks like a cash grab dressed as an emergency fix.
- Another example, Regency Gardens, hit owners with nearly triple fees plus a $22,000 lien so managers could patch up the roof.
- At least two families had to list their homes to stay afloat.
- Statewide, the bad news is catching up fast. Orlando averages an annual 16.7% hike, Fort Lauderdale adds another 16.2%, and the Miami-Dade/Broward corridor has added nearly 60% since 2019.
- Rising hurricanes, inflation, and insurance math have pushed Florida homeowners’ premiums sky-high, leaving policyholders across the state holding the bag. Roughly 79 percent of lawsuits over homeowner insurance payments now start in the Sunshine State.
- Many observers link the spike to soaring repair costs and an industry still jittery after the last storm season.
- In a more colorful twist, boardroom thrifts have captured headlines.
- A diamond-trimmed Miami condo once saw a single employee swipe nearly $6 million.
- That scandal matches other reports of embezzlement shaking Florida associations.
- In 2022, the Hammocks homeowner group in Miami-Dade arrested insiders for a $1.5 million scheme that paid fake contractors with real money.
- Further inland, residents of the Solivita retirement community sued developer Avatar Properties and won $35 million because the builder charged improper fees that fell through the legal cracks.
- Red flags never change.
- Missing invoices, vendor-side deals, and in-house elections run like fixed games.
- Communities that self-manage usually lack outside eyeballs, which makes spotting the fraud harder until it has done the most damage.
- Florida law gives homeowners board-wide authority to raise dues at will, and that power is reflected in Chapter 720 of the state statutes.
- Unlike condo associations, where members can protest hikes above 115 percent, nobody stops a homeowners group from doubling or tripling its budget.
- Documents like the CC&Rs secretly let directors levy special assessments for what they label necessary upkeep, paving the way for surprise bills that land with the next dues notice.
- Transparency rules exist, yet enforcement barely crawls, so many residents wake up to sticker shock after the vote has already happened, or worse, before they even knew there was a vote.
- Complaints about sleepy boards, secret budgets, and harassment appear in nearly every neighborhood chat.
- Many folks swear the property manager hides key numbers and skips meetings to keep quiet.
Homeowner PushbackPublic Outcry
- Residents have had it.
- They now pack meeting rooms and vent online.
- Reddit threads in r/orlando buzz about doubling dues and wild embezzlement whispers.
Legal Action
- Lawsuits are stacking like dirty dishes in the sink.
- Solivita neighbors snagged a jaw-dropping $35 million award, and other communities are testing the waters.
- A scandal in Hammocks even led to criminal indictments, waking everyone up to the real risk.
Investigations
- The state DBPR cannot look away anymore.
- A 2024 budget stuffed with $7.4 million and 65 extra hands is supposed to chase down missing reserves and faulty audits.
Legislative ResponsePost-Surfside Reforms
After the Surfside tragedy, SB 4-D enacted new rules. Buildings must now pass inspections and stash cash for rainy days, and yes, all that extra safety comes at a steep price.
2025 Proposals
Lawmakers are already teasing 2025 ideas. One lets short condos skip the expensive reserve studies, and another dangles $2,500 grants for seniors hammered by sudden assessments.
- Creating an HOA Ombudsman Office could give frustrated homeowners a one-stop shop for complaints.
- The idea copies a similar setup that already works for condo boards in the state.
- Residents say a local, face-to-face office would beat mailing sour letters to Tallahassee.
- Florida lawmakers sent an unmistakable message in 2024.
- Mess with the money, and you may lose the seat.
- New rules upgraded faux elections to first-degree misdemeanors. They required embezzling directors to hand in their badges—no, their badges—while facing the charges.
- Extra classes on finances and ethics are no longer optional for the core board members.
- Regular dues hikes are now handcuffed at 10 percent a year, and any special fee that chews up more than 5 percent of the budget needs the thumbs-up of six out of ten owners.
- Lawyers warn that even a tiny math error on the notice can sink the increase before it starts.
What Could Change?
- Lawsuits are piling up like laundry at the start of a holiday weekend.
- Homeowners finally have teeth and are using them.
- Many boards are looking at short-term loans to spread bills, hoping the idea sticks before their neighbors start bickering again.
- If Tallahassee keeps hearing horror stories, the Capitol could force tighter leashes on associations.
- Caps on fees or automatic owner votes for big expenses no longer sound like fringe proposals.
- The promised Ombudsman Office still sits in limbo because nobody can agree on its budget or what translators the staff will need.
- Inland markets are starting to hum again since skyrocketing condo dues push city-dwellers out toward the pasture.
- State figures show sales slipped by 10.5 percent last year, almost when the new cost rules kicked in.
- That drop opened breathing room for buyers who, only a year earlier, would not have logged a single mile beyond the beltway.
Critical Perspective
- Legislators aimed a fire extinguisher at a slow-burning problem.
- Still, the hose sprayed mud on half the neighbors instead of just the flames.
- More oversight sounds nice, yet most new rules land as line items on the balance sheet long before the board minutes vote them in.
- Many states let homeowners associations write rules and police themselves, but that hands-off approach leaves big holes.
- When the law is fuzzy, angry board members can wander off the rails, and nobody steps in fast enough.
- Current calls for tiny fixes, such as one-time grants or the choice to quit the HOA, look good on a flyer yet hardly change the daily grind of dues and fines.
- Real reform would cap late fees, turn the state into a genuine referee, and let residents veto budget bumps, tasks that rattle developers and property managers.
Advice for Homeowners Involved
Attend board meetings, review the budget, and ask for an audit. Because of Florida’s sunshine law, all those documents must be open.
Know Your Rights
The official rules in your HOA handbook and Florida Statutes 718 or 720 tell you how dues can jump. By the way, can’t condo boards push assessments over 15 percent without a homeowner vote?
File Complaints
If the board ignores you, the Department of Business and Professional Regulation (DBPR) or the new proposed Ombudsman Office can step in.
Seek Legal Help
Attorneys like Perez Mayoral and Ansbacher Law focus on housing disputes. Their websites break down everything from special assessments to collection lawsuits.
Push for Loans
Lobby your board to seek a loan instead of dumping a huge special assessment on residents, especially retirees living on fixed incomes.
Verification Note
So far, the $6 million claims from Baldwin Park and Miami have popped up in chat groups, but they don’t have hard news links. Could you share a newspaper clip or court record if you spot one, and I’ll look deeper?
Florida’s HOA system is bending under rising bills and fuming homeowners. Real change is possible but will only stick if everyone keeps pressing.
Please tell me which piece you want to tackle next: fees, fraud, fresh laws, etc.
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In This Episode:
To many, Kevin James is just the lovable star of The King of Queens. Once, I thought his $14 million slice of Delray Beach sun was a wise move. Instead, his story now warns about how quickly high-end real estate can backfire.
In 2021, the actor signed the dotted line through the Knipfing family trust and grabbed an 11,500-square-foot oceanfront showpiece with six bedrooms, a separate guesthouse, and a T-shaped pool that practically spills into the Atlantic. Builders NRIA and U.S. Construction had snatched the place for nearly $7 million in 2017, tore into renovations, and then flipped it to James at a remarkable markup.
Trouble lurked long before the cameras arrived, though. Al Rabil, the previous owner, was so irked by the shoddy concrete slabs that he sued the contractor and even convinced the city to label the house unsafe. When James filed the 2021 sales contract, a last-minute add-on already admitted the structure needed fixing and parked $250,000 in escrow to cover a leaky garage door, a wonky elevator, and assorted snags. Courts later revealed that none of those repairs had ever moved off the drawing board.
Pinning the scandal directly on NRIA, investigators stamped the developer a fraud in late 2022. Their probe peeled back the flashy brochures and discovered a thick layer of deceit. From 2018 through 2022, a small army of marketers promised triple-digit returns while stalking 2,000 unsuspecting people. Shadowy CEO Thomas Nicholas Salzano fronted the operation even though a prior felony kept his name out of the headlines. He blinked dollar signs at radio listeners and TV fans while parking his true title on the back burner. Billboards brightened highways for miles, shouting about unbeatable profits. Real estate experts who asked tough questions were dismissed. Company books, none of which were posted publicly, tiny, dim details suggested a shambles. Payables swelled into the hundreds of millions before anyone admitted the coffers were empty. New cash kept the machine running; old cash kept angry voices quiet. An internal memo leaked to reporters described what insiders called the revolving door of money. By June 2022, NRIA threw in the towel, Chapter 11, confessing liabilities between $500 million and $1 billion. Prosecutors piled up fraud counts faster than the defense could write rebuttals. Salzano ultimately copped a plea, pocketing a 12-year prison stretch, the tax man waiting behind him for a fresh bite. Total restitution, the judge announced, would reach $507.4 million. Arthur Scuttaro, listed as a senior adviser, admitted guilt and signed a cooperating statement. Rey Grabato, however, slipped away and was still on the lam as of autumn 2023.
In February 2025, the court trustee for NRIA cornered actor Kevin James with a surprise lawsuit. She wanted back the $250,000 he had parked in escrow, arguing the promised roof fixes had never happened. As that drama brewed, he had flipped the Delray Beach mansion ten months earlier. James sold it for $12.7 million in May 2023 and swallowed a $1.3 million loss because he could not front the repair bills. The trustee’s legal volley was far from unique; more than thirty other suits chased builders, financiers, and even fellow investors tangled in NRIA’s wreckage. Investors and homeowners alike usually view a trophy purchase as a slam dunk. However, when scammy developers slip through the cracks, the bill can land in your lap before you catch your breath.
In this video, we dive deep into the crazy story of actor Kevin James and the $14 million Florida mansion that turned into a financial nightmare. What began as a luxurious real estate purchase quickly unraveled into a cautionary tale involving a bankrupt developer, unfinished repairs, and a massive $650 million Ponzi scheme operated by National Realty Investment Advisors (NRIA). We break down the full timeline of the mansion—from its glamorous listing and troubled construction to the shocking lawsuit and final sale at a multi-million dollar loss. You’ll learn how NRIA’s fraudulent practices led to one of the recent biggest real estate investment scandals, impacting thousands of investors and inadvertently dragging Kevin James into the chaos. Whether you’re into celebrity real estate, fraud, luxury home disasters, or the dark side of investing, this video exposes the hidden risks behind high-end property deals.
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California drivers, brace for a wallet-busting shock: a 65-cent-per-gallon gas price hike could hit pumps by July 1, 2025, sparking outrage among lawmakers and consumers. Right after the federal EV mandate ends, California makes a foolish action. The state’s air quality regulators, appointed by Governor Gavin Newsom, updated their clean fuel program on November 8, 2024, to push cleaner energy and electric vehicles (EVs). However, Senate Minority Leader Brian Jones calls it a hidden tax that could drive gas prices to a staggering $8 per gallon by 2026, squeezing working families and nudging them toward bankruptcy. With the federal EV mandate repealed, California’s aggressive state policies, including its 2035 gas vehicle ban, influenced a dozen other states to follow its lead. With two oil refineries closing and a AAA survey showing 63% of Americans rejecting EVs, this raises a critical question: are California and its follower states sacrificing your paycheck for climate goals? Buckle up for a deep dive into this contentious plan, the fight to stop it, and what it means for drivers nationwide. You’ll want to share this story with every driver you know.
Starting July 1, 2025, California motorists are bracing for a 65-cent surge at the pump. State officials tie the bump to new tweaks in the Low Carbon Fuel Standard that the California Air Resources Board (CARB) green-lighted on November 8, 2024.
Senate Minority Leader Brian Jones is calling the hike a hidden tax. He warns it could push average gas prices to $8.43 by 2026, blaming the LCFS, looming refinery shutdowns, and various state rules.
Two major refineries plan to go dark: Phillips 66 in Los Angeles and Valero in Benicia. Those closures will chop California’s refining muscle by roughly 20 percent.
A study from USC economist Michael Mische backs up the alarm bells. He estimates prices could leap to $6.43 after the first plant shuts and then hit that $8.43 mark again if both close. Even steeper jumps are possible if supply chains stumble.
The revised LCFS is part of California’s wider push to outlaw new gas-powered cars by 2035, a move that other states like New York and Washington are now eyeing. CARB, a board largely chosen by Governor Gavin Newsom, insists the fine-tuning will slash tailpipe pollution and keep climate goals on track.
Critics like Jones counter that the policy shoves drivers toward electric vehicles that many families still can’t afford or do not want.
A recent AAA poll finds that almost two-thirds of Americans, or 63 percent, feel electric vehicles are still out of reach. People voice three big blockers: sticker shock, the nagging worry about running out of charge, and a charging network that feels like Swiss cheese. Even skeptics admit the tech is cool; they say the kinks still need work.
State Senator Mike Jones swung at the Low Carbon Fuel Standard price jump with Senate Bill 2 in Sacramento. Yet, his effort tanked 10-23 when Senate Democrats lined up against him. Jones keeps saying the governor’s payroll of taxes and red tape is squeezing the last breath out of Cali refiners, leaving drivers on the hook for another $600 to $1,000 a year at the pump. Team Newsom fires back by pointing to ABX2-1. This new rule forces refineries to stash a minimum fuel stockpile so shortages don’t snap into view.
Even so, economists like Gokce Soydemir are hard to convince. They say California’s sky-high tax rate of 61.2 cents a gallon, with a fresh hike slated for July 1, and the state’s custom-blend fuels are still turning the price dial the wrong way. They warn that the latest fixes may only involve buying window dressing instead of real relief.
Meanwhile, Washington repealed its sweeping federal EV rules, conflicting with California’s full-throttle electrification drive. As a result, gas from the Golden State still finds its way to Arizona and Nevada, places whose governors, Katie Hobbs and Joe Lombardo, are now bracing for the same price pinch that Californian drivers have felt for years. The public mood has dipped so low that posts on X have begun labeling CARB’s board members unelected cost-jackets with barely a day off after election night.
All these fireworks land against a backdrop of California’s ultimate goal—net-zero carbon by 2045. For supporters, the Low Carbon Fuel Standard could be a major piece in that puzzle; for critics, it looks more like a toll road with no exit sign.
People behind the pump already feel the pinch as a fresh 65-cent jump, plus a tucked-away 2-cent excise tax, pours straight into their receipts—California gas hills at $4.82 right now, roughly $1.67 above the national average. Rural spots like Humboldt might peek past an eye-watering $8 mark in 2026, putting headaches on top of others.
Balance has tipped out of the tank. Yes, California struts a green badge most folks admire, but charging stalls and wallet sizes don’t keep pace. Some watchers swear the hike surfaced just shy of election day to dodge voter heat, and reporters are sniffing at the records because politics usually smells. Rumor says Newsom has an ethanol mix waiting in the wings that could shave 20 cents a gallon, but until that magic brew hits the market, we’re stuck with basic, brittle math.
Drivers far beyond the state line are feeling Cali’s price punch, too, since so much of the country’s fuel leans on its rules. When Washington axed the nationwide electric car mandate last month, the symbol was loud: top-down green orders can backfire. The plan may nudge inventors toward cleaner tech. Yet, it also risks draining the poorest families ‘ wallets and giving local economies a case of whiplash. A friend once joked that when California sneezes, we catch a cold. Right now, that cough sounds painfully familiar.
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President Donald Trump has officially signed three critical congressional resolutions into law that dismantle California’s ability to dictate vehicle emissions rules for the entire nation. This action not only halts California’s plan to ban gas-powered vehicles by 2035 but also sends a powerful message: vehicle choice belongs to American consumers—not unelected state regulators.
These repeals represent a significant policy shift. They reverse the Biden-era Environmental Protection Agency’s waiver allowing California to impose stringent emissions standards on both passenger vehicles and heavy-duty trucks. Under the Biden administration, California’s aggressive climate mandates threatened to become a de facto national standard, as more than a dozen states tend to follow California’s regulatory lead.
The Trump administration’s move, backed by Transportation Secretary Sean Duffy, Energy Secretary Chris Wright, EPA Administrator Lee Zeldin, and othMOer lawmakers, ensures that no state has the power to eliminate gas, diesel, or hybrid vehicles from the market.
