Fannie, Freddie Slam Brakes On All Cases Handled By South Florida Foreclosure Mill

The Wall Street Journal reports:

• Fannie Mae and Freddie Mac said on Monday that the mortgage giants had suspended all activity on foreclosure cases that had been referred to a Florida attorney under investigation by state officials.

• Fannie and Freddie had previously stopped referring new cases to the Law Offices of David J. Stern, of Plantation, Fla., earlier this month. On Monday, Fannie said its latest move would affect all cases that "are not already subject to a foreclosure pause" by banks and other firms that service mortgages owned by Fannie, said a company spokeswoman. Freddie Mac said late Monday it had also suspended new referrals and current activity.

For more, see Fannie Mae Halts Law Firm's Foreclosure Work.