The New York Times (DealBook article by Peter Lattman, 11/21/2011), and The Buffalo News (article 11/21/2011 by Jonathan Epstein) , are reporting that the troubled foreclosure law firm Steven J. Baum PC is shutting down. The firm filed notices with the government of intention to dismiss a mass number of employees. The firm has at least 90 employees.
No official word on the fate of Pillar Processing, the spun-off foreclosure services business affiliated with Baum, but the Buffalo News article reports that similar dismissals are expected there by the end of February.
Until recently, the Baum firm administered 40% of the foreclosures in New York State. As I reported last Thursday, the Baum firm was just recently banned from future foreclosure and bankruptcy work on Fannie Mae and freddie Mac mortgages. The firm was alleged to have ridiculed foreclosed homeowners, as I posted on October 31 this year. A year ago, I posted an extensive blog analyzing the Baum business model and its privatization of ancillary work to its spin-off, Pillar Processing. The firm has been subject to several counterclaims and lawsuits regarding its foreclosure practices, as I also posted a year ago.