Business

Fla. subpoenas lender for mortgage information

By DAVID FISCHER/Associated Press

Thursday, January 31, 2008 8:25 PM CST

TALLAHASSEE, Fla. - Florida's attorney general is investigating Countrywide Financial Corp., the nation's largest mortgage lender, for possible unfair and deceptive business practices related to its home loans.

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.

McCollum is also interested in how Countrywide conducts itself with borrowers who find themselves in trouble. He said he was interested in comments made by several bankruptcy judges concerning how the company treats people seeking relief.

Countrywide said it received the subpoena ‘‘and will cooperate fully with the State's investigation,'' but declined further comment.

The attorney general's office started a mortgage fraud hot line last year. It has received about 150 complaints on Countrywide.

Countrywide, based in Calabasas, Calif., has until Feb. 11 to provide the information.