Wednesday, November 28, 2007

Countrywide faces foreclosure probe

Report says bankruptcy court regulator looking into whether mortgage lender is tacking on improper fees and charges to loans in foreclosure.

NEW YORK ( -- Countrywide Financial, the nation's leading mortgage lender, is facing a federal probe into its foreclosure practices, according to a published report.

The New York Times reported Wednesday that the U.S. Trustee, the federal agency monitoring the bankruptcy courts, subpoenaed its records to determine if two foreclosures in southern Florida represented abuses of the bankruptcy system by the lender.

The agency, a part of the Justice Department, announced an effort to move against mortgage servicing companies that file false and inaccurate claims in foreclosure cases.

No comments: