GSE Tells Servicers to Transfer Foreclosure Cases from Stern Law Firm

""Fannie Mae"":http://www.fanniemae.com has issued a notice instructing servicers that have cases at the Law Offices of David J. Stern, P.A. to ""take immediate action to transfer those matters to other firms"" in the ""Fannie Mae Retained Attorney Network"":https://www.efanniemae.com/sf/technology/servinvreport/amn/pdf/retainedattorneylist.pdf in Florida.

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By November 15, servicers must determine transfer locations for the Fannie Mae matters currently at the Stern firm, notify the new firms, and inform the GSE of the destination for the cases in question.

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Fannie Mae says servicers should instruct the new law firms to work directly with the GSE and the Stern law firm to execute an ""orderly transfer of the collateral files."" Servicers have been told to work with the new law firm to ensure that all mediation, foreclosure, bankruptcy, and litigation matters that require immediate intervention or action within the next 30 days are made a top priority.

""Servicers are reminded of their responsibility to monitor and manage the attorney's performance with respect to the matters transferred from the Stern firm,"" according to the memo.

Fannie Mae says it has officially severed ties with the Stern law firm. ""Servicers may not refer any future Fannie Mae matters to the Stern firm,"" according to the GSE's notice. Freddie Mac is ""taking the same course of action"":http://dsnews.comarticles/gses-blacklist-controversial-foreclosure-law-firm-in-florida-2010-11-02 with the controversial ""foreclosure mill"" headquartered in Plantation, Florida.

Fannie Mae stated that it is in the process of adding firms to the Retained Attorney Network list for the state of Florida. According to a recent report from the _Palm Beach Post_, Fannie Mae has sent retention letters to nine other firms in the state.