A Florida law firm has been terminated by the Federal Home Loan Mortgage Corp. following an internal investigation.
After holding up new business at the firm, Freddie Mac terminated its relationship with the Law Offices of David J. Stern, P.A., according to Bulletin No. 2010-26 issued Tuesday to servicers.
The secondary lender had already requested that the law firm stop accepting new case referrals. Freddie also asked the company to stop processing all Florida foreclosure and bankruptcy matters on all of its loans.
“Servicers may not refer any new Freddie Mac foreclosure or bankruptcy cases to the Law Offices of David J. Stern, P.A., whether referred within or outside Freddie Mac’s designated counsel program,” today’s notice said.
Freddie said that it is still trying to determine where the files will be sent.
But a Wall Street Journal article said that Freddie has taken the unusual step of seizing possession of the files — a process it reportedly started on Monday. The move was reportedly prompted by an internal review and done “simply to protect our interest in those loans as well as those of the borrowers,” a spokeswoman was quoted as saying.
