Ex-NY F'closure Mill King, Affiliated Document Preparation Sweatshop To Cough Up $4M In State AG Civil Suit Settlement Over Alleged Legal Work Abuses

Bloomberg reports:

• Steven J. Baum PC, the largest foreclosure law firm in New York until it shut down last year, reached a $4 million settlement with the state over abuses in its legal work.



• Part of the money paid by the firm, Pillar Processing LLC, Steven Baum himself and managing partner Brian Kumiega will be used to help homeowners facing foreclosure or victims of predatory lending, New York State Attorney General Eric Schneiderman said today in a statement. Baum formed Pillar in 2007 to process foreclosure documents.

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• In October, the firm, based in Amherst, New York, just north of Buffalo, reached a $2 million agreement related to its foreclosure practices with Manhattan U.S. Attorney Preet Bharara. After that settlement was announced, Fannie Mae and Freddie Mac, the mortgage-finance companies under U.S. conservatorship, dropped Baum from their lists of law firms eligible to handle foreclosures. The firm then said it would close.

For the story, see Baum Foreclosure Firm Settles With New York for $4 Million.