Fannie Mae sticking with fired Florida law firm

[The Straight Story]

Fannie Mae sticking with fired Florida law firm

Federal mortgage backer Freddie Mac fired a Florida law firm this year for "foreclosure processing abuses," but sister company Fannie Mae continues to use the firm because it's too expensive to transfer files to new attorneys.

A Federal Housing Finance Agency Inspector General report released Tuesday criticized the two entities for, among other things, a lack of communication about problems within law firms used to take people's homes.

But, even when Freddie Mac told Fannie Mae why it was firing the Florida firm, Fannie decided to retain the law firm's services, noting that the cost of moving cases "would be substantial."

According to the report, Fannie Mae is expecting a $5.5 million bill for transferring files from the Law Offices of David J. Stern to new attorneys. Both Fannie and Freddie fired the Plantation-based Stern firm in November.

http://www.palmbeachpost.com/money/foreclosures/fannie-mae-sticking-with-fired-florida-law-firm-1898370.html