Document Mess Hits Fannie, Freddie

The Wall Street Journal reports:

Raising questions for the first time about the role of Fannie Mae and Freddie Mac in the unfolding mortgage-foreclosure crisis, the two government-owned giants are reviewing the work of a Florida law firm they recommended to process foreclosures.


Until now, Fannie and Freddie have been largely bystanders in the widening foreclosure scandal, because they don't directly service loans, or handle day-to-day management of mortgages. But their use of so-called foreclosure mills, law firms that specialize in quickly processing thousands of foreclosures on behalf of lenders, is dragging the companies into the latest crisis.

Great moments in GSE's.