California AG investigating Countrywide

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News item: California’s attorney general is investigating Countrywide Financial, the L.A. Times reports this afternoon: ‘The nation’s No. 1 home lender, Countrywide Financial Corp., said today that it was being investigated by California Atty. Gen. Jerry Brown and the attorney general in Illinois.

More: ‘Countrywide said it had received subpoenas from both officials but declined to elaborate, citing a company policy of not commenting on the status of investigations. The Calabasas company said it was cooperating in the two probes.’

Brown recently told the L.A. Times he was particularly interested in loans that involved yield spread premiums -- under which mortgage brokers often receive higher compensation for placing borrowers in higher-interest rate loans.

The Illinois investigation was reported by the New York Times, and several of you pointed it out today in comments. Countrywide faces at least two other investigations: The SEC is investigating stock trades by CEO Angelo Mozilo, and the federal agency that monitors bankruptcy cases is investigating whether Countrywide charged unjustified fees to customers going through bankruptcy, the Los Angeles Times reports.

Your thoughts? Comments? Insights? Sorry, no photo this time of Mozilo.