Freddie Mac announced Tuesday that it has terminated its relationship with the law offices of David J. Stern, P.A. in Plantation, Florida. Fannie Mae, too, says it has suspended business with the so-called Florida “foreclosure mill.”

The Stern law firm is one of the largest in the state, processing thousands of cases a month, and had been retained by both Fannie and Freddie as a preferred legal counsel for its servicers to go to for pending foreclosures and home repossessions.

But the firm and its namesake attorney have been the focus of high-profile investigations by both the Florida attorney general and the Florida Bar Association for allegedly falsifying legal documents and misleading the courts in numerous foreclosure cases.

The GSEs are no longer referring new cases to the David Stern law offices and have instructed the firm and its attorneys to stop processing all Florida foreclosure and bankruptcy matters related to Fannie Mae or Freddie Mac mortgages.

Freddie clearly stated in its notice issued Tuesday, “Servicers may not refer any Freddie Mac foreclosure or bankruptcy cases to the Law Offices of David J. Stern, P.A., whether referred within or outside Freddie Mac’s Designated Counsel Program.”

The GSE continued, “It is critically important to Freddie Mac that the legal rights of borrowers and the integrity of the foreclosure process are protected and that our servicers fully comply with applicable law and Freddie Mac’s servicing requirements. Freddie Mac continually monitors the participants in our Designated Counsel Program for compliance with Freddie Mac guidelines.”

The David Stern law offices have been removed from both Freddie Mac’s list of approved legal counsel and Fannie Mae’s retained attorney network. There are currently four Florida firms listed as designated counsel for Freddie, and eight firms on Fannie’s list.

Freddie says it is in the process of identifying law firms to which it will transfer cases from the law offices of David Stern. According to a report from the Palm Beach Post, Fannie Mae has already sent retention letters to nine other firms in Florida.