Cuomo Subpoenaing NY Mortgage Companies?

New York Attorney General Andrew Cuomo has issued generic subpoenas to about 30 mortgage lenders and servicers asking about industry practices, and he may focus on mortgage broker compensation, according to a mortgage banking attorney."Given his recent foray into the student lending world, it wouldn't surprise me if he looks at payments by lenders to mortgage brokers," said Larry Platt, a partner in the Washington office of K&L Gates. But he stressed that he has no inside knowledge. "I am just speculating." The subpoenas were issued in the past few days, and they generally relate to appraisal practices, mortgage broker practices, and the way lenders slot borrowers into different loan products. "There is no accusation of any wrongdoing," and it appears that the AG's office is trying to get a handle on how the industry operates, Mr. Platt said. "Any subpoenas that were received are part of an ongoing investigation -- that's all I can say," said Arthur Harris, a spokesman for Mr. Cuomo's office. Mr. Platt said he suspects that the New York AG will focus on payments by lenders to brokers, which are called yield-spread premiums, based on his tenure at the Department of Housing and Urban Development. In 1997, then-Secretary Cuomo tried unsuccessfully to impose strong disclosure requirements on broker compensation, which industry groups considered anti-YSP.