Countrywide Subpoenaed by Florida

Countrywide Financial was subpoenaed by Florida Attorney General Bill McCollum, who is investigating the lending practices of the company, the largest U.S. mortgage lender.

The subpoena, which seeks descriptions of the company's loan underwriting since January 2005 and copies of instructions given to employees for speaking with customers, comes as lenders nationwide are facing scrutiny following the collapse in the value of subprime-mortgage securities.

"The general purpose and scope of this investigation extends to possible unfair and deceptive trade practices," McCollum said in the subpoena, which was issued Jan. 17. The company has until Feb. 11 to comply with the document request.

McCollum formed a Mortgage Fraud Task Force in September with 25 lawyers and staff to investigate allegations of lending fraud in the state. Spokeswoman Sandi Copes confirmed yesterday that a subpoena had been issued.

"Countrywide has received the subpoena from the Florida Attorney General and will cooperate fully with the state's investigation," company spokeswoman Jumana Bauwens said in an e-mailed statement. "As a matter of policy, Countrywide does not comment further on the status of pending investigations."

Bankruptcy trustees and other investigators say they want to know whether Countrywide, based in Calabasas, Calif., and other home-loan companies made false claims against bankrupt homeowners or used questionable proof to make them pay.

U.S. Bankruptcy Judge Paul G. Hyman in West Palm Beach, Fla., told Countrywide in December to turn over to the U.S. trustee internal documents relating to how it calculates claims. The trustee is a Justice Department official who monitors bankruptcies. Countrywide is appealing the judge's order.

Chief executive Angelo Mozilo agreed Jan. 11 to sell Countrywide for about $4 billion in stock to Bank of America.