Freddie Mac CEO: We will help increase mortgage lending

Freddie Mac CEO: We will help increase mortgage lending

Competition among two is still competition

MBA forecasts 7% origination jump in 2015

Predicts unemployment at 5.4% by end of next year

Fitch: Two-year run of home price growth is over

“Several markets are still overvalued”
W S

DJSP gets NASDAQ delisting warnings, strikes BofA deal

/ Print / Reprints /
| Share More
/ Text Size+
A subsidiary of DSJP Enterprises (DJSP), whose main customer is the Law Offices of David J. Stern, has worked out an agreement with Bank of America (BAC) on a defaulted line of credit, giving the company some breathing room until March. Still, the subsidiary, known as DAL Group, remains in default on other obligations, including its office rent, and warned that if it is unable to restructure its debts, it may not be able to remain in business. Florida-based DAL is among a group of companies connected to DJSP and David J. Stern that provide foreclosure processing and related services. In November, Bank of America notified DAL that it was in default of a line of credit and demanded payment in full. The outstanding balance on the line of credit was $6.4 million as of Dec. 9, according to a regulatory filing. Under a new agreement reached, BofA has agreed not to take action to enforce full payment until March 9, as long as DAL makes weekly cash payments "in excess of agreed upon levels." The regulatory filing on the agreement didn't specify the dollar amounts agreed upon. In addition, BofA said no further borrowing will be permitted under the terms of the line of credit, which is secured by a lien on all of assets DAL and its four operating subsidiaries. NASDAQ noncompliance NASDAQ, meanwhile, has notified DJSP Enterprises that it is noncompliant with listing rules. The company isn't meeting the stock exchange’s rule to maintain a minimum market value of $15 million on its publicly held securities. NASDAQ gave the company until May 23 to regain compliance by having its market value of publicly held securities close at $15 million or more for 10 consecutive days. NASDAQ said the firm is also in violation of a rule for failure to maintain a minimum market value of $50 million on listed securities. Its market value of listed securities must close at $50 million or more for 10 consecutive days in order to regain compliance. The firm has until May 25 to comply with the market value requirement. Neither warning should impact listing and trading of the stock at this time, DJSP said in the filing with the Securities and Exchange Commission, but if the company fails to regain compliance, it risks delisting. NASDAQ rules also require that listed stocks trade for at least $1 a share. DJSP was trading at 53 cents Tuesday morning and has traded as low as 33 cents in recent weeks as news about robo-signing allegations broke and key companies, including Fannie Mae, Freddie Mac and Citigroup removed their foreclosure files from the Law Offices of David J. Stern. Write to Kerry Curry.

Recent Articles by HousingWire Staff

Comments powered by Disqus