Schumer seeks Countrywide probe

May 15, 2008

Sen. Charles E. Schumer, a New York Democrat, has asked the Federal Trade Commission to investigate "an emerging pattern of apparent misconduct" by Countrywide Financial Corp. toward debtors in bankruptcy proceedings. Schumer, in a letter to FTC Chairman William Kovacic, cited Countrywide's "admission" in a bankruptcy proceeding that it "'re-created' letters that had never actually been sent to the debtor." The senator said there are "cases in multiple states in which Countrywide attorneys were reportedly forced to withdraw motions that incorrectly contended that debtors were delinquent on payments." Schumer is chairman of the Senate administrative oversight and courts subcommittee.