An embattled foreclosure law firm — criticized for a Halloween party which mocked the homeless, and which was recently shunned by Fannie Mae and Freddie Mac — will close. According to a spokesman for Steven J. Baum P.C., the firm will shut down. The shutdown was confirmed after the firm sent a notice of mass layoffs to state labor officials. The firm will fulfill remaining work before closing its doors and laying off the last of its 89 employees.
The firm’s demise began after photographs surfaced of employees dressed like homeless people for a Halloween party in 2010, which prompted Fannie Mae and Freddie Mac, the nation’s largest mortgage lenders, to stop referrals. In October, the firm agreed to pay a $2 million fine after a federal probe. Its practices are currently being investigated by the New York Attorney General.
Source: USA Today
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