Fannie Mae and Freddie Mac are reviewing the work of a Florida law firm they recommended to process foreclosures, according to a report on the Wall Street Journal website, citing sources.

Freddie Mac told mortgage servicers to stop sending cases to the law offices of David J. Stern in Plantation, Florida, last Friday, said the report. Fannie Mae took the same action on Monday.

The Florida attorney general's office has been investigating the firm and released a deposition of one employee who alleged the firm forged notarized documents, said the Journal.

Fannie Mae and Freddie Mac have hired separate firms to review the foreclosures handled by the law firm. Fannie Mae is also conducting audits of all nine Florida law firms it retained this year, the sources said.

The news came the same day that all 50 U.S. states launched a joint investigation of the mortgages industry amid allegations that some banks did not properly review files before evicting delinquent borrowers from their homes.

Fannie Mae, Freddie Mac and the law offices of David J. Stern did not immediately return calls seeking comment.