Countrywide Waves Off Call for Probe

Countrywide Financial(CFC Quote) on Tuesday brushed off criticism of more than $50 billion in advances made to its struggling bank by a government-sponsored institution.

The nation's largest mortgage lender, during a previously scheduled presentation in New York, said it is in "full compliance" with the collateral requirements of the Federal Home Loan Bank of Atlanta. In a letter Monday, U.S. Sen. Charles Schumer (D., N.Y.) called for a federal probe of the advances, saying the poor quality of loans Countrywide put up as collateral "may pose a risk to the safety and soundness of the FHLB system as a whole."

David Bigelow, Countrywide's managing director of investor relations, said the lender is very familiar with the collateral requirements of the FHLB through its long-standing relationship with the quasi-government agency. ...