Investopedia described Robo Signing fiasco as, “In the third and fourth quarters of 2010, a robo-signing scandal emerged in the United States involving GMAC Mortgage and a number of major U.S banks. Banks had to halt thousands of foreclosures in numerous states when it became known that the paperwork was illegitimate because the signers had not actually reviewed it. While some robo-signers were middle managers, others were temporary workers with virtually no understanding of the work they were doing.”
Florida was one of the states that was hit the hardest with foreclosures and claims against wrongful foreclosures. Former foreclosure attorney David J. Stern was a one of the state’s most well known in this whole debacle. Plagued with legal trouble after losing his Fannie Mae and Freddie Mack “membership card”, his firm, along with 3 others are facing monstrous allegations regarding their incompetent paperwork.
Shapiro & Fishman, Florida Default Law Group and the Law Offices of Marshall C. Watson were the 3 other firms grouped in with Stern’s. Claims came flooding in after Fannie Mae, Freddie Mac, and other well-known servicers dropped Stern. Even now, after Stern is longer with the firm, the claims continue to be filed.
There is no telling how the Florida Bar Association will decide to rule on this, but with the list of accusations and the recent findings of probable cause these last few days, Stern could be subject to a punishment anywhere from probation, suspension or even being disbarred.
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