Foreclosure Law Firm Ben-Ezra Katz Lays Off Nearly Half of its Staff, After Losing Fannie Mae

Foreclosure law firm lays off nearly half of its staff, after losing Fannie Mae

A Hollywood law firm that processes thousands of foreclosures for major lenders laid off almost half of its 568 employees Monday, days after the government-owned mortgage giant Fannie Mae pulled its files from the practice.

Ben-Ezra & Katz, in a memo released by a company spokesman, said the firm was “forced to take this action after Fannie Mae surprisingly terminated its relationship with the firm.” In a notice sent five days ago, Fannie Mae officials said all exisiting foreclosures, mediations and bankruptcies needed to be transferred to other loan servicers by Tuesday, citing “document execution” issues.

Ben-Ezra officials issued a statement last week, saying the question was whether correct original documents were attached to each foreclosure filing. The law firm said it already had notified Fannie of the “technical paperwork issues” and had created a plan to mediate them, but the mortgage backer suddenly decided to cut ties.

It’s unknown how many foreclosures are involved. Statewide, Ben-Ezra & Katz has handled at least 18,000 cases, according to Legalprise, a West Palm Beach data analysis firm.

Monday’s layoffs echoed the massive job cuts that the law office of David J. Stern and public-traded affiliate DJSP Enterprises instituted after Fannie Mae and Freddie Mac, the other federal mortgage guarantor, dumped them. Fannie and Freddie comprised the bulk of Stern’s business. About 700 Stern employees lost their jobs, according to regulatory filings.

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Comments
3 Responses to “Foreclosure Law Firm Ben-Ezra Katz Lays Off Nearly Half of its Staff, After Losing Fannie Mae”
  1. Really Grim says:

    Any possibiliy Samuel White will have to fire most of their staff?

  2. obam says:

    When are they coming after the Default Law Criminals and their puppet, Michael K Winston?,…

  3. THAT GRAPHIC IS THE BEST!!! Thanks for the laugh during these dark times.

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