Countrywide reportedly under FBI investigation

The troubled home loan servicer is being probed by Feds for using fraudulent lending practices, financial reporting.

NEW YORK (CNNMoney.com) — The FBI has launched an investigation into the lending practices of battered home lender Countrywide Financial Corp. according to a U.S. government official, CNN has learned. The mortgage company is suspected of fraud, the official said, which may have contributed to the subprime mortgage crisis that has rocked the U.S. economy.The story was first reported in The Wall Street Journal Saturday.

The probe will examine underwriting and mortgage origination practices, and whether the company misrepresented losses related to subprime loans, the paper said.

Read more

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s