Tuesday, November 2, 2010

David Stern Stripped of His Fannie and Freddie Foreclosure Files

On October 20, 2010 I asked the question what would happen if big mortgage lenders decided to hire new counsel to take over the foreclosure cases being handled by David Stern's office. Well, it finally happened. The Wall Street Journal and ABC News reported that Mortgage giants Fannie Mae and Freddie Mac are transferring thousands of foreclosure cases from his office.

Both companies said they were starting to transfer files to other law firms. This process is going to prolong the foreclosure mess because not only is the transfer going to be a problem with more lost or misplaced documents but what about the time the new law office is going to have to invest to get up to speed on all of those files. That's going to be an administrative and scheduling nightmare.