Law Offices of David J. Stern to cease foreclosure work in Florida
The Law Offices of David J. Stern, under investigation for its foreclosure practices, will cease to handle pending Florida foreclosure cases as of March 31, according to a new regulatory filing.
DJSP Enterprises ($0.10 0%), the publicly traded arm of the once-massive foreclosure operation, disclosed the news in a Monday filing with the Securities and Exchange Commission.
DJSP said it doesn't expect to get any additional business from the Plantation, Fla.-based law firm. Stern was the only major client of DJSP, a foreclosure servicer with processing and title affiliates. Stern resigned as the CEO of DJSP last fall as the investigation of his law firm heated up.
Whether the filing means the law firm will shut down entirely is unclear. Stern's attorney, Jeffrey Tew with Tew-Cardenas, told HousingWire that he would not be commenting on the matter.
Both Stern and DJSP have been in a freefall since last fall when allegations of robo-signing came to light. Neither Stern nor DJSP representatives could immediately be reached for comment.
The law firm is one of several under investigation by the Florida Attorney General's Office. It lost a huge chunk of business when Fannie Mae and Freddie Mac pulled their foreclosure cases from the firm, and has gone through several rounds of job cuts.
DSJP, meanwhile, was warned in December that it is at risk of being delisted from the NASDAQ because its stock has been trading at less than $1. DJSP has until June 13 to regain compliance.
In November, a DJSP subsidiary defaulted on a bank line of credit.
Write to Kerry Curry.
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