Countrywide Barred From Mortgage Lending

llinois' top banking regulator is barring Countrywide Home Loans Inc. from making any new mortgages in the state until his agency is convinced the lender is complying with terms of a new settlement requiring workouts of existing mortgages that otherwise would be headed for foreclosure.

The Illinois Department of Financial and Professional Regulation on Thursday granted renewal of Countrywide's license to operate in the state but made it conditional on making no new home loans until the department gives the go-ahead. The order affects more than 100 loan offices around the state and requires them to focus on working out existing loans that are in trouble.

Countrywide's license comes up for renewal again on April 30.

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