Another Subpoena For Countrywide; Florida AG Probes Servicing Practices, Possibly "Sticking People" In Bankruptcy, Lending Practices

The Wall Street Journal reports:

• Countrywide Financial Corp. confirmed yesterday that it received a subpoena from the Florida attorney general seeking information on its business practices. The subpoena adds to the problems for the Calabasas, Calif., lender, which has drawn the ire of bankruptcy judges, borrowers and consumer groups for months. Florida Attorney General Bill McCollum is seeking information on how Countrywide handles borrower payments as well as materials related to sales practices and standards for making loans. Mr. McCollum is also investigating whether Countrywide has charged excessive fees to borrowers in the foreclosure process. In an interview, he noted that even bankruptcy judges have flagged these fees and expressed concern that Countrywide "may be sticking people at the end of the process."

For more, see Subpoena Deepens Countrywide's Woes (subscription required; if no subscription, try here, then click link for story, then "refresh" browser if needed).