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NEW YORK (Reuters) – The U.S. Justice Department has challenged an agreement that Countrywide Financial Corp reached in a bankruptcy court in Pittsburgh, saying it would make it harder to investigate and sue the mortgage lending giant.
Last month, Countrywide agreed to pay $325,000 to the Chapter 13 bankruptcy trustee in Pittsburgh, Ronda Winnecour, to cover legal costs and settle litigation accusing it of abusive practices in 293 separate cases.
But the Justice Department said a “non-disparagement” clause in the Countrywide agreement might impede its own investigation of the lender. The Office of the U.S. Trustee is a Justice Department arm that handles bankruptcy cases.
