Freddie Mac settles with David J. Stern law firm

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Freddie Mac settles with David J. Stern law firm

Freddie Mac settles with David J. Stern law firm

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The now defunct Law Offices of David J. Stern recently entered into a settlement agreement with Freddie Mac, ending a two-year legal battle between the foreclosure firm and the government-sponsored enterprise over outstanding fees.

Freddie Mac first took issue with the Stern firm in late 2010 when they and major mortgage servicers quickly dumped the firm in the midst of an attorney’s general investigation into foreclosure practices at several Florida default services firms and a scandal over the robo-signing of foreclosure affidavits.

The settlement leaves somewhat of a dark cloud over the GSEs since they and major servicing shops have taken the opportunity to quietly settle with the Stern firm, making it unclear whether Fannie and Freddie – and servicing shops – actually paid out money to settle litigation with a law firm that became synonymous with the default servicing scandals that plagued the state a few years ago.

[HOUSING WIRE]

image: Bill Warner P.I.

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