Another headache for Countrywide

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It is hard to keep track of the various challenges facing Countrywide Financial at the moment, but this is a new one: ‘Countrywide Financial Corp. is the target of a multi-state federal investigation aimed at determining whether the Calabasas-based lender has been levying unjustified fees on consumers going through bankruptcy.’

More, from this morning’s Los Angeles Times: ‘The U.S. trustee’s office, the agency charged with monitoring the bankruptcy courts, has filed subpoenas in at least a dozen cases in Florida, Pennsylvania and Texas asking Countrywide for information about questionable claims for fees.’

Typically, when Fortune 500 companies face this kind of investigation they issue a boilerplate statement that reads something like this: ‘We are cooperating fully with this investigation and we look forward to a speedy resolution.’

That’s one of the things that makes this story different. Countrywide is objecting to the investigation: ‘Countrywide has objected to the subpoenas, saying in court filings that the sweeping nature of the requests is unprecedented and part of a ‘series of attempts by the U.S. trustee to conduct a wholesale investigation into Countrywide’s policies and procedures.’ ‘

Ray of sunshine department: Countrywide shares gained 66 cents today, closing at $9.38.

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com.
Photo Credit: Bloomberg