Lawyers

Fannie Mae Cuts off Ties With Two Large Foreclosure Law Firms in Colorado
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

 

The national mortgage giant, Fannie Mae has unexpectedly cut off ties with two law firms that used to handle the lion’s share of foreclosures in Colorado. Fannie Mae will no longer have any business to do with The Castle Law Group LLC and Aronowitz & Mecklenburg, LLP with immediate effect.

  
What
Where


Fannie Mae has remained tight-lipped on the matter and didn’t divulge why it took this action that led to the transfer of hundreds of cases to other attorneys. Insiders say that Freddie Mac, the other mortgage-finance business of the government, is also determined to make a similar move.

Fannie Mae’s decision has come while a Colorado attorney general investigation into the conduct of five foreclosure law firms suspected of bill padding remains ongoing.

According to state investigations, Castle Law Group and Aronowitz & Mecklenburg, two of the five foreclosure law firms being investigated, had charged additional amounts for posting legal notices on foreclosed homes largely done through process-service companies in which the lawyers had a financial tie or ownership stake. Both the firms had manipulated and influenced the foreclosure process to make undue profits of millions of dollars at the expense of homeowners and taxpayers.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Fannie Mae has a very strict code of conduct for the attorneys representing them. Industry experts say that maybe the results of the state’s investigation in the courtroom battles between Attorney General John Suthers’ efforts to obtain records of attorneys’ billing practices and the law firms’ fight to prevent details from becoming public have led to the decision.

Fannie Mae spokesperson Keosha Burns informed the media, “Fannie Mae has instructed servicers to cease referrals of new foreclosure cases to Aronowitz & Mecklenburg and the Castle Law Group and to transfer existing cases at those law firms to other firms.”



It is still unclear what financial impact this loss of work will have on the two law firms. Fannie Mae suspensions, though rare, are usually known to significantly affect the businesses of suspended entities.



 

RELEVANT JOBS

Legal Assistant / Secretary

USA-WA-Seattle

Salary $55,000 - $75,000 a year Job Type Full-time Number of hires for this role 1 ...

Apply now

Associate Attorney

USA-SC-Spartanburg

Gibbes Burton, LLC is seeking full-time attorneys with 2-5 years of experience to work on complex ci...

Apply now

Associate Attorney

USA-WA-Everett

Associate Attorney Requirements: We are a solo general practice firm specializing in family law, ...

Apply now

Litigation Paralegal

USA-FL-Tallahassee

Summary Law firm with litigation emphasis seeks assistant for lawyer / litigation team. The ideal...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

BCG Attorney Search In-House Counsel

USA-CA-Los Angeles

BCG Attorney Search In-House Counsel We are a Legal Employment Company located in California with o...

Apply Now

FDA Regulatory Attorney

USA-MA-Boston

Boston office of a BCG Attorney Search Top Ranked Law Firm seeks FDA regulatory attorney with 3-4 ye...

Apply Now

Foreclosure/Bankruptcy Associate Attorney

USA-CA-Temecula

Temecula office of our client seeks associate attorney with preferably 2 years of experience working...

Apply Now

SEARCH IN ARCHIVE

To Top