At a Senate hearing, a top banking regulator said that Fannie Mae and Freddie Mac contributed to the foreclosure crisis with their red tape of mortgage servicers and lawyers. Representatives for the mortgage giants said they had hired firms to manage the foreclosures and therefore were not responsible. John Walsh, acting Comptroller of the Currency, said that the investigation into foreclosures has shown a light on "shoddy practices" and that his agency will crack down on those responsible.

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