On IN Your Head Radio this Wednesday, Attorney General Bill McCollum reported that he was investigating one of the country’s biggest lenders, Countrywide Financial Corp., for possible unfair and deceptive business practices related to its home loans.
Today the Associated Press has picked up on the story. The Herald Tribune reports:
The subpoena, dated Jan. 17, directs Countrywide to provide documents and other information describing procedures used to determine whether borrowers qualify for subprime loans, those for people with shaky credit.
The state also wants information on how Countrywide credited borrowers’ payments any time after January 2005. It also asks for documents that track applications of borrowers’ payments to bankruptcy debt and a description of fees charged to mortgage holders during the same period.
“We’ve had a number of complaints about Countrywide, as well as other mortgage companies in the subprime arena,” Attorney General Bill McCollum told reporters Thursday. The complaints involve “how some of their business was conducted in terms of marketing and in terms of advertising.”