Tuesday, November 22, 2011

Notorious "Foreclosure Mill" Shuts Down After Halloween Uproar

The NY Times reports that Steven J. Baum P.C., the firm of foreclosure lawyers who had earlier agreed to a settlement of 2 million dollars for improper activities that included "robo-signing" foreclosure documents, will permanently shut down. The reason was not because of their bank related actions, but rather a Times story showing photos of a homeless themed party last Halloween.

Publication of pictures some of of the firm's 89 employees in costumes mocking folks who had lost their homes led Freddie Mac and Fannie Mae to forbid servicers of their mortgages from using Mr. Baum and his colleagues.

Joe Nocera, The Times columnist who originally wrote about the firm’s Halloween party, published another column about the controversy. In it, he quoted an e-mail that Mr. Baum had sent him last week.
“Mr. Nocera — You have destroyed everything and everyone related to Steven J. Baum PC. it took 40 years to build this firm and three weeks to tear down."

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