Nov 29, 2007 8:57 am US/Pacific
Countrywide Targeted In Multi-State Investigation
CALABASAS (CBS) ―
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The U.S. trustee's office has filed subpoenas in at least a dozen cases in Florida, Pennsylvania and Texas asking Countrywide for information about questionable claims for fees, the Los Angeles Times reported.
AP
Countrywide Financial Corp. is the target of a multi-state federal investigation aimed at determining whether the Calabasas-based lender has been levying unjustified fees on consumers going through bankruptcy, it was reported Thursday.
The U.S. trustee's office, the agency charged with monitoring the bankruptcy courts, has filed subpoenas in at least a dozen cases in Florida, Pennsylvania and Texas asking Countrywide for information about questionable claims for fees, the Los Angeles Times reported.
Countrywide has objected to the subpoenas, saying in court filings that the sweeping nature of the requests is unprecedented and part of a "series of attempts by the U.S. trustee to conduct a wholesale investigation into Countrywide's policies and procedures," according to The Times.
"Countrywide's filings in these cases adequately set forth our public positions. In accordance with our accustomed policy, we won't comment further on these matters while they remain in litigation," company spokesman Rick Simon said in a written statement cited by The Times.
At issue are fees claimed by mortgage lenders against consumers attempting to work out payment plans through the U.S. Bankruptcy Court, Michael A. Frank, a Miami-based attorney representing borrowers Manuel del Castillo and Maria E. Pena of Florida, told The Times.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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