The Wallstreet Journal is reporting the country's largest mortgage lender is being investigated.

Authorities want to know if Countrywide Financial Corporation committed securites fraud.

They're trying to learn whether the company's managers misrepresented their finances and the quality of their loans.

A Countrywide spokeswoman told the New York Times, the company is "not aware of any such investigation."

From the Bronx, to Boston, to St. Paul, foreclosures are spreading like cancer. in Minnesota, legislators aren't waiting for outside help. they've introduced legislation to require lenders to defer foreclosures on subprime loans for a year:

State Representative. Jeremy Kalin said, "we have real families that are being devastated by the foreclosure crisis."

Across the country, the delinquency rate for all mortgages -those are payments more than a month past due have soared to nearly 6% (5.82%) the worst since 1985.

For subprime loans the delinquency rate is a staggering 20%, a record.

And with house prices falling, by one estimate, nearly nine million homeowners (8.8), that's 10% of all homes, will have no equity in their houses or owe more than they're worth by the end of this month Even fed chairman Ben Bernanke admitted this week: "more can and should be done."

But the Bush Administration has no plans to do more:

Dana Perino,White House Spokesman said, "we do not believe that the American taxpayers should be bailing out lenders or borrowers."

Congressman Barney Frank, head of the Financial Services Commiittee, says you can't worry about rescuing some borrowers who made bad decisions.

Frank said, "if you insist on not doing anything at all to help them, they're not the only ones who will suffer. the whole economy will."

Frank will introduce legislation this week to help lenders who agree to reduce the principal on delinquent loans, for borrowers who could then afford to pay. Analysts say whatever action the government takes needs to be clear & quick:

As a million and a half sub-prime adjustable rate mortgages reset to much *higher* monthly payments.

And that foreclosure rate is expected to keep rising through this year..

Iowa's Attorney General has set up a "foreclosure Hotline."

The number is 877- 622- 4866.

www.IowaAttorneyGeneral.org