Freddie Mac told servicers on Tuesday to stop referring Freddie Mac foreclosure cases to the Florida Law Offices of David J. Stern, and said it is transferring its existing cases at the firm to other law firms. HousingWire wrote about Freddie’s termination of its relationship with the firm two weeks ago. Besides Freddie, Fannie Mae and CitiGroup also stopped referring cases to the firm in the wake of the robo-signing foreclosure scandal. “It is critically important to Freddie Mac that the legal rights of borrowers and the integrity of the foreclosure process are protected and that our servicers fully comply with applicable law and Freddie Mac’s servicing requirements,” the bulletin said. Freddie Mac has already directed the law offices of David J. Stern that it should not accept any new case referrals, and that it should temporarily stop processing all Florida foreclosure and bankruptcy matters on all Freddie Mac mortgages, the guide bulletin said. Servicers may not refer any Freddie Mac foreclosure or bankruptcy case to the firm whether referred within or outside Freddie Mac’s designated counsel program. “Freddie Mac is in the process of identifying the law firms to which it will direct the transfer of cases from the Law Offices of David J. Stern. … Freddie Mac will assess the status of these files and finalize decisions on their transfer. Servicers must not change the current status of files that have already been referred to the Law Offices of David J. Stern, P.A., until further notice by Freddie Mac.” Write to Kerry Curry.
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