FreedomWide- DEBT CONSOLIDATION, LOWER MONTHLY PAYMENTS, CONSOLIDATE DEBT

NEW YORK (MarketWatch) — The Federal Bureau of Investigation is looking into whether troubled lender Countrywide Financial Corp. deliberately made loans to borrowers who did not have the assets or financial wherewithal to pay them back, The Wall Street Journal reported Tuesday.
Shares of Countrywide (CFC: 4.98, -0.13, -2.5%) hit a 13-year low Monday after falling 14% on the news of a larger FBI probe into Countrywide’s loan-origination and securitizations processes.

But the lender was up 13% in early trading Tuesday on news that the Federal Reserve would inject more money into the financial system, in a bid to stabilize cash-strapped mortgage companies.
The Journal’s report quoted unnamed sources involved in the probe as saying the FBI is now scrutinizing every aspect of Countrywide’s mortgage-underwriting practices, after questions have been raised about the lender’s institutional emphasis on stated-income assurances from subprime borrower

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Tags: Countrywide, mortgages

This entry was posted on Wednesday, March 12th, 2008 at 7:13 pm and is filed under Mortgage Lender & Broker News, Mortgage News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.