The firms that have handled problems with documents regarding foreclosures and are on Freddie Mac and Fannie Mae's lists are facing both federal and state probes in the matter related to faulty foreclosure practices that at present poses threat to the housing market and take it down more. The biggest mortgage companies of the US Fannie and Freddie had given shape to the practices that are being challenged in the court room all across the US. Both the mortgage firms had chosen law firms that could do the foreclosure work faster and paid those law firms on the basis of number of foreclosure they could process.

Speed was of essence as the more the delays the more the companies had to bear money. They were taken over by the US government a couple of years back for which taxpayers had to incur losses.

The firms not only urged the law firms for speedy foreclosures but also ,in at least one of the cases Fannie Mae had worked with a law firm that got involved in legally questionable practices which was known to Fannie Mae. These facts were collected from documents and interviews with industry officials and lawyers.

The name of the law firm is Law Offices of David J. Stern of Florida which did a business worth hundred- million dollars or more bringing in foreclosures for thousands of borrowers who had to loose their homes in the housing debacle. One of the Fannie executives who was responsible for supervising outside law companies in Florida was questioned in 2010, regarding a matter of Stern's firm in which it was involved in a class-action lawsuit where the firm had been charged for fraudulently charging fees from borrowers based on erroneous paperwork.