Posted on Monday, November 8, 2010
The troubled Plantation foreclosure firm the Law Offices of David J. Stern and affiliate DJSP Enterprises laid off about 200 employees Thursday on the heels of word it lost major clients Fannie Mae and Freddie Mac.
Stern attorney Jeffrey Tew of Tew Cardenas in Miami said he didn’t know how many attorneys or paralegals were affected. The layoffs were at both the law office and DJSP Enterprises, the publicly traded foreclosure-processing company launched by Stern.
The layoffs were a direct result of mortgage giants Fannie Mae and Freddie Mac severing ties with the firm two days ago, Tew said.
"The case numbers have been reduced, so you have to adjust," he said.
The cuts leave a staff of about 400, down 600 positions from a year ago when the firm broke the 1,000-employee mark.
Tew couldn’t say whether there will be more layoffs but insisted the firm is not closing.
"It’s still one of the bigger firms in South Florida," he said.
Stern’s firm has been on a downward slide since Florida Attorney General Bill McCollum announced his office was investigating the firm, along with three others, for potential irregularities in foreclosure documents.
Stern was not available for comment by deadline.