The federal agency monitoring the bankruptcy courts has subpoenaed Countrywide Financial, the nations largest mortgage lender and loan servicer, to determine whether the companys conduct in two foreclosures in southern Florida represented abuses of the bankruptcy system. The subpoenas for Countrywide documents were issued in late October by the United States Trustee after the agency announced an effort to move against mortgage servicing companies that file false and inaccurate claims in foreclosure cases. The inquiries into Countrywide by the trustees office, a division of the Justice Department, come as foreclosures are increasing across the country.
Countrywide failed to appear at hearings on both borrowers objections, and judges ordered the fees stricken from the claims. The United States Trustee took an interest in both matters after Countrywide did not respond to the borrowers objections. I don’t know how you look at it but fee packing, which has not been proven in these cases, is simple mortgage fraud in my opinion.
The United States Trustee Program is the component of the Department of Justice responsible for overseeing the administration of bankruptcy cases, and protecting the integrity of the nations bankruptcy system. In Ohio three federal judges dismissed 73 foreclosure claims by mortgage lenders.