Former 
Florida foreclosure king David Stern’s rise was swift, and his fall has been equally fast. Stern announced this week that he would shut down the foreclosure practice at his Plantation, Fla.-based firm by the end of March, according to the Daily Business Review
Stern stepped down as president and CEO of DJSP in November to focus exclusively on his law firm, which handled foreclosure proceedings for big banks and took in a whopping $260 million in 2009. Stern made $60 million by spinning off his firm’s back office mortgage-processing operations in January 2010, according to SEC filings. As Stern’s caseload soared, his staff tripled to 1,200 employees, and a satellite office in the Philippines hummed along crunching foreclosure data during off hours in the U.S.
But concerns about how Stern and other Florida foreclosure mills were handling mortgage records and other documents used in court proceedings grew. In August, former Florida attorney general Bill McCollum announced an investigation into potential irregularities in mortgage paperwork by Stern and three other foreclosure shops.
The investigation caused Stern to lose major clients like Fannie Mae and Freddie Mac and much was written–The Associated Press and The New York Times both recently ran long stories on Stern–about the stunning downfall of the foreclosure king following the collapse of the U.S. residential mortgage market several years ago.
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