Countrywide Admits Errors, Denies Misconduct In Testimony To Senate Panel

In Washington, D.C., The Associated Press reports:

• Mortgage lender Countrywide Financial Corp., which is under investigation for inflating certain borrowers' fees, acknowledged Tuesday that it has made errors and pledged to take steps to improve its operations. Steve Bailey, chief executive for loan administration at Countrywide, told a Senate panel that the company's employees have made mistakes "from time to time." He said the company will hire an outside auditor to review its actions in cases involving homeowners who have filed for bankruptcy court protection. But he disputed accusations, made by hundreds of borrowers in Pennsylvania, Florida and other states, that the company has sought to collect inflated fees and other payments by filing inaccurate bankruptcy documents.

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• Sen. Charles Schumer, D-N.Y., chairman of the panel, criticized what he called a broader "vulture mentality" in the mortgage lending industry. "Companies have repeatedly sought to foreclose on homes where owners were current on payments, sought attorneys fees in bankruptcy court for motions that they have lost, and failed to keep even the most basic records to justify their claims in bankruptcy court," he said.

For more, see Countrywide Financial Admits Loan Officers Made Errors.

In a related story, see The Atlanta Journal Constitution: Georgia family puts face on mortgage crisis:

• Facing criticism from a Georgia family and senators of both parties, a Countrywide Financial Corp. executive said Tuesday that the company had a new plan to keep mortgage processing errors from harming homeowners. But Steve Bailey's testimony before the Senate Judiciary Committee could not shift the spotlight away from the giant lender's role in the loss of the Atchley family's home.