Fairbanks Cites Cooperation With HUD Probe

Fairbanks Capital Corp. says it is cooperating with an inquiry by the Department of Housing and Urban Development into the company's servicing practices."We have contacted HUD and will be providing that agency with accurate information to address the unfounded allegations reported in the media that have prompted the HUD inquiry," FCC president Bill Garland said. Maryland Sens. Barbara Mikulski and Paul Sarbanes, both Democrats, have been pushing for a HUD investigation as a result of a series of news stories by WBAL-TV in Baltimore that focused on consumer complaints about Fairbanks, which is based in Salt Lake City. Mr. Garland said his company, the nation's largest subprime servicer, is reviewing all the cases that have been subject to media attention. A spokesman for the HUD inspector general said, "This matter is under continuing review, and we have no comment at this time."