We have heard before about the instigations that Countrywide Financial Corp. deliberately issued loans to borrowers who were obviously unable to pay due to not having enough money capital or not being able to handle the teaser rate of the loans later on. A federal judge recently ruled that the Justice Department has the authority to question the organization under oath and subpoena documents from them. The attorneys for Countrywide had tried to argue against being subpoenaed by saying that this was outside of the powers of the bankruptcy trustees and that this was merely an illegal "fishing expedition."

To date there are over 300 bankruptcies in Pennsylvania alone that involve borrowers with Countrywide. The Judge, Thomas Agresti, did state that while there is no proof yet to 100% support wrongdoing, but that there has been " a showing of a common thread of potential wrongdoing". He will currently be in charge of over 293 of the cases against Countrywide. Legal action is also being taken against the company in Ohio, Florida, and Georgia.

Countrywide has been currently trying to improve their amount of default loans by modifying loan terms and repayment plans among other things. They admit that they have made some errors with debts issued, but never deliberately misused bank procedures to collect money.