Steven J. Baum, P.C. was dropped by Fannie Mae and Freddie Mac, the mortgage-finance companies operating under U.S. conservatorship, from their list of law firms eligible to handle foreclosures.
Fannie Mae said that, "After Nov. 15, 2011, servicers may not refer any new Fannie Mae foreclosure or bankruptcy cases in New York to Steven J. Baum PC..."
On November 10, 2011, Freddie Mac announced its ban. So, both companies said the Baum firm would continue to work on matters referred before the effective dates. Neither said why the firm was being suspended.
Last month, Steven J. Baum PC, one of the largest foreclosure law firms in New York state, agreed to pay the United States approximately $2 million so to resolve a probe of its foreclosure filings. The agreement concluded an investigation into whether the firm filed misleading pleadings, affidavits and mortgage assignments in courts, according to a statement by U.S. Attorney Preet Bharara in Manhattan. The settlement didn't constitute a finding of wrongdoing.
It seems that such non-compliances truly burden the homeowners the most because they are the ones that have to ultimately face eviction. The lenders will recover losses from the TARP funds or mortgage insurance if applicable.
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