Fannie Mae and Freddie Mac have largely escaped the mortgage-foreclosure meltdown, but their use of law firms specializing in foreclosure processing is pulling them into the fray. Fannie and Freddie recently instructed mortgage servicers to no longer send foreclosure cases to a Florida law firm that has been at the center of the storm. "Obviously, a lot of issues have been raised about this firm," said Brian Faith, a spokesman for Fannie. "We thought it was appropriate and responsible to suspend new referrals to the firm while we undertake our review."

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