Tuesday, November 16, 2010

Fannie Mae to Stern Law Firm: You're Fired
Foreclosure Mill Faces its Demise

Fannie Mae sent a letter last week to all of its affilliates servicers telling them to immediately take Fannie Mae loans out of the hands of the Stern Law Firm. If you're not familiar with the Stern firm, it's a Florida based "foreclosure mill" firm that has been at the heart of controversies involving robosigned and otherwise questionable documents.

DJSP Enterprises, a publicly-traded company set up to do the back office processing of the Stern cases immediately announced a lay-off of 435 of its 1,600 employees. It was once the 9th largest employer in Broward County (Ft. Lauderdale), Florida. DJSP's major subsidiary, DAL Group LLC defaulted on a $12 million line of credit with Bank of America. Bank of America, of course, is into the foreclosure mess up to its proverbial corporate eyeballs.

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