On November 2, 2010, the Audit Committee of the Board of Directors of DJSP Enterprises , Inc. (the “Company” or the “Registrant” ) appointed Jewett, Schwartz, Wolfe & Associates (“Jewett”) as the Company’s independent registered public accounting firm, effective immediately. Jewett served as the independent registered public accounting firm of Chardan 2008 China Acquisition Corp. (“Chardan”) for the periods prior to the closing on the Business Combination (as defined below). Chardan changed its name to DJSP Enterprises, Inc. on January 15, 2010 in connection with the closing of the Business Combination.
On October 27 , 2010, the Company was notified that effective October 27 , 2010, McGladrey & Pullen, LLP, the Company’s independent registered public accounting firm (“McGladrey”), resigned as the independent registered public accounting firm for the Company.
The terminations come two days after mortgage giants Fannie Mae and Freddie Mac severed ties with the firm. “There’s been a substantial reduction in staff, it started happening over the past few weeks and many employees received notice today,” said Jeffrey Tew, a lawyer representing the Stern firm.
By RICHARD WILNER NYPost Last Updated: 1:03 AM, May 30, 2010 Posted: 1:03 AM, May 30, 2010
A new gold rush is sweeping the country — only this time the speculators are looking to get fat off the $4 billion home foreclosure industry by promising banks a streamlined and low-cost method to kick folks out of their homes. DinSFLA: Last time I heard the word “speculators” was in the CONDO BOOM!
In the last two years, as the mortgage meltdown intensified, four companies have gone public or filed papers to go public — each looking to get their hands on cash to help grow into a national powerhouse quickly to take advantage of the soft housing market.
Buying shares of these companies is like shorting the housing market — sort of giving the average investor a chance to be a mini-John Paulson, the hedge fund mogul who made billions betting against the housing market in 2007. There were roughly 2.9 million foreclosures in 2009 and there are currently 6 million homeowners 60 days or more delinquent on their mortgage.
The companies — DJSP Enterprises, which saw revenues grow 31 percent last year, Altisource Portfolio Solutions, which reported a 182 percent jump in profits last year, and Lender Processing Services, whose $2.4 billion in revenue was up 29 percent last year — each offer a technology platform that links mortgage lender clients on one end and law firms clients on the other.
A fourth company, Prommis Solutions, which swung to a $7.9 million profit in 2009 from a loss in 2008, recently filed papers to go public.
The four companies profit, in large part, from the high volume of mortgage defaults — collecting fees from banks for each referral and from law firms, which file the foreclosure actions. In fact, the companies warn that a turnaround in the housing market or additional mortgage-modification plans from Washington could chill their profits.
Last week, shares of DJSP Enterprises got slammed, falling 25 percent on Friday, to $6.46, a 52-week low, after the company lowered its guidance for 2010 in the wake of a drop in the number of foreclosures.
It’s a strange, new sector of the housing finance sector, where bad news for America fattens the bottom lines for these companies, and good news for beleaguered homeowners knocks the stuffing — and dollars — from their bottom lines.
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