Massive Florida foreclosure firm to close

PLANTATION, Fla. - A law firm that once led Florida in foreclosures is shutting down amid an investigation into "robo-signing" and other questionable practices.

A Securities and Exchange Commission filing Monday indicated that David Stern's Plantation-based practice will end operations March 31. The firm once had more than 1,200 employees and handled tens of thousands of foreclosures each year.

Stern's firm is one of several under investigation by Florida's attorney general. The probe focuses on whether false or improper affidavits were filed in foreclosures and whether employees were robo-signers who signed documents without reading them.

A broader national probe is examining how foreclosures were handled during the economic downturn.

Meanwhile, Iowa's attorney general says it will be several months before a final deal is reached with five big U.S. banks on changing the system of foreclosures to compel lenders to modify more homeowners' loans.

Tom Miller is a leader of the negotiations with the banks by the 50 state attorneys general and federal regulators. The talks began last fall after the state and U.S. officials launched an investigation of whether banks used flawed documents to foreclose on home borrowers.

Miller said he hoped for a final agreement "in a couple months." He wouldn't discuss specifics. Under draft terms, banks reportedly would be barred from starting foreclosure while homeowners are trying to modify their mortgage.

The lenders are Bank of America, Citigroup, JPMorgan Chase, Wells Fargo and GMAC.