Fannie, Freddie halt thousands of Florida foreclosures

Mortgage buyers revoke cases from a law firm under investigation for allegedly falsifying documents

Published November 2, 2010 6:20PM (EDT)

Mortgage buyers Fannie Mae and Freddie Mac are revoking thousands of foreclosure cases from a Florida law firm under investigation for falsifying documents used to complete foreclosures.

Both companies say they have started transferring those documents from the Law Offices of David Stern to other firms.

The Stern firm has been under investigation by the Florida attorney general's office. A former employee has said in testimony that an office manager would sign as many as 1,000 documents a day without reading them and without witnesses present.

Jeffrey Tew, an attorney for Stern's firm, declined to comment.

Fannie and Freddie's actions were reported earlier by the Wall Street Journal.

By Alan Zibel

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