CHICAGO — Illinois Attorney General Lisa Madigan has expandedthe state's investigation of mortgage lending practices, issuingsubpoenas for documents from Countrywide, the nation's largest homelender.


The investigation follows a look at the loan originationprocedures of the already-shuttered One Source Mortgage, many ofwhich were provided by Countrywide. The AG filed suit against OneSource in November for misleading borrowers, putting them into payoption adjustable rate mortgages they didn't know would adjustafter only one month.


Countrywide's problems are further exacerbated by an SECinvestigation into stock trades made by CEO Angelo R. Mozillo justbefore its stock took a dive earlier this year in reaction to themounting subprime problem. The United States Trustee is alsodelving into several Florida borrowers' bankruptcy cases whoseloans were serviced by Countrywide to find out if there was anymisconduct in how they were handled.

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