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Fannie Mae Cuts Ties With 2 Colorado Foreclosure Law Firms

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(credit: fannie-mae-mortgage.fetcharate.com)

(credit: fannie-mae-mortgage.fetcharate.com)

DENVER (AP) — Mortgage-finance giant Fannie Mae has cut ties with Colorado’s two largest foreclosure law firms.

The Denver Post reported Saturday that the Federal Home Loan Mortgage Corp., known as Freddie Mac, is also reviewing the possible need to take similar action.

Fannie Mae spokeswoman Keosha Burns in a statement says existing foreclosure cases at Aronowitz & Mecklenburg and the Castle Law Group will be transferred to other firms. Burns also says mortgage servicers have been instructed to stop referring new cases to the firms.

Neither firm immediately responded to efforts by the Post to reach them Friday. Both firms have consistently denied any allegations in an ongoing investigation by Colorado Attorney General John Suthers.

Suthers’ inquiry into five law firms began last year and is focused primarily on bill padding.

(© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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