An unnamed law enforcement official is telling AP that the Pasadena mortgage company, now under the control of regulators, is being looked into. No details were offered, other than that the inquiry is not focused on individuals who actually ran the thrift institution. One hint: An FBI spokesman said earlier in the day that the number of players in the months-long probe of corporate fraud in the subprime lending industry had risen to 21, from 19. No names given. A recent report by the Center for Responsible Lending alleges that IndyMac valued short-term growth over protecting borrowers and shareholders' interests. Before being taken over IndyMac disputed the report's findings.
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