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From Strictly Business Blog:

National mortgage servicing giant Freddie Mac has barred its loan servicers from referring any new foreclosure or bankruptcy cases in New York State to Steven J. Baum PC, delivering a severe blow to a firm that depends on such work.

According to a new bulletin posted on the Freddie Mac website on Thursday, effective “on or after” Nov. 10, the Amherst-based law firm is no longer an approved option for the many mortgage lenders that work with Freddie Mac.
Those lenders and servicing firms, which collect loan payments and otherwise administer loans owned or controlled by Freddie Mac, have long used Baum more than any other firm in New York state. So its removal from the list of “designated counsel and trustees” could mark a major hit.
Freddie Mac spokesman Brad Germain confirmed the decision, but declined to elaborate on the reasons. He acknowledged that Baum was “a big firm” for Freddie Mac business.

Consumer advocates and opposing attorneys, who have denounced the firm’s practices, were pleased by the decision. Some also cited the example of David Stern, a Florida law firm with a similar operation to Baum’s that was essentially driven out of business by such controversy.

“We have a lot of the banks who are trying to rectify a negative image,” said Rebecca Case Grammatico, an attorney at the Empire Justice Center in Rochester. “And right now, Steven Baum’s name is bringing additional unwanted negative publicity to banks. So everybody is just trying to stay clear of any bad press in the future.”

See also: New York’s Largest Foreclosure Firm Mocked Downtrodden Homeowners at Halloween Party

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