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Countrywide Mortgage and Subprime Loans

January 16th, 2009

Not too long ago, Countrywide was being investigated for mortgage security fraud.

The New York Times, which also cited anonymous sources, said the Justice Department is also involved in the Countrywide investigation. “We are not aware of any such investigation,” Countrywide spokeswoman Susan Martin told the Times.  BofA and Countrywide have been very aggressive with loan modification plans, so it looks like in the end Countrywide is trying to get it right. In recent years, bank and lenders are less likely to offer subprime home loans to a borrower that is struggling with affordability.

The Wall Street Journal first reported that the mortgage superpower was the subject of an inquiry, citing law enforcement officials and finance executives with knowledge of the development. FBI spokesman Special Agent Richard Kolko would not confirm if Countrywide is under investigation but said there is an open investigation. “The FBI has been investigating potential fraud in the subprime lending industry, however, we cannot confirm or deny which companies are under investigation, “Kolko said.

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