Stern's DAL Enters Forbearance Agreement With Bank of America Over Credit
A business run by David Stern, the Florida foreclosure lawyer who is under investigation by the state’s attorney general, entered a forbearance agreement with lender Bank of America NA.
The bank agreed not to take action in the period ending Nov. 26 over a default on a revolving line of credit by DAL Group LLC, a unit of Stern’s foreclosure-processing company, DJSP Enterprises Inc., according to a regulatory filing. The credit line, entered into in March, has an outstanding principal balance of about $12 million, DAL said.
Jeffrey Tew, Stern’s lawyer, said earlier this month that Stern’s law firm and DJSP cut about half of their staff after mortgage-financing companies Fannie Mae and Freddie Mac ended ties with Stern. Florida Attorney General Bill McCollum said he is investigating Stern’s law firm because it appears to be submitting “false and misleading” documents in foreclosure cases.
Stern’s businesses continue to operate and have a total of between 400 to 500 employees, Tew said on Nov. 4. DAL received a notice of default from Bank of America on Nov. 5, according to the regulatory filing.
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