WASHINGTON — Countrywide Financial Corp. denied Tuesday that it has mistreated homeowners who have been forced into bankruptcy to save their homes, but the giant mortgage lender promised to take steps to give greater transparency and integrity to its practices.

"Recent media reports alleging that mortgage servicers are systematically charging excessive fees and using the bankruptcy process to push borrowers into foreclosure or abusing the process more generally are inaccurate," said Steve Bailey, senior managing director of loan administration for the Calabasas-based lender.

But Sen. Charles Schumer, D-N.Y., blasted Countrywide and other mortgage lenders during a congressional hearing for what he described as a "vulture mentality."

Borrowers who already have been harmed by dubious lending practices are mistreated again when they file for bankruptcy and are hit with questionable fees that can total thousands of dollars, said Schumer, chairman of the Senate Judiciary Committee's Subcommittee on Administrative Oversight and the Courts.

In some cases, Schumer said, lenders have tried to foreclose on homes when owners were current on payments, have sought attorneys' fees during bankruptcy proceedings for motions that they have lost, and have failed to keep even the most basic records to justify their claims in bankruptcy court.

"There is a disturbing pattern of piling on that we need to get to the bottom of," he said.

Countrywide already is under investigation by the Justice Department and the FBI, which are looking into whether the company misrepresented its financial condition and loans in filings with the Securities and Exchange Commission.

Schumer said he also might ask the Federal Trade Commission to look into whether the lender is assessing bankruptcy-related fees that should not be allowed.

Too often, Schumer said, lenders are charging bankruptcy fees that are inflated, duplicative or simply made up. They include fees for overnight deliveries, faxes, payoff statements, property inspections and legal services.

"This is death by a thousand fees," Schumer said. "And the companies know that the hapless homeowner is too poor, too unsophisticated or too overwhelmed to challenge often blatantly fraudulent demands for payment."

Robin Atchley of Waleska, Ga., told Schumer's panel that when she and her husband sought bankruptcy protection in 2005, Countrywide filed papers showing that they still owed $185,000 on their home.

A year and a half later, however, Countrywide sent them a payoff demand statement indicating that the amount owed was actually $14,000 higher. Nearly $2,800 of that was for fees.

"It seems as if Countrywide used the bankruptcy court to gain even more opportunities to take advantage of our predicament and to profit from our struggle," said Atchley, who ended up selling her home.

Under intense questioning from Schumer, Bailey defended Countrywide's practices, saying allegations that the company has intentionally assessed inappropriate fees and costs to borrowers in bankruptcy "are simply not true."

While some employees have made mistakes, Bailey said: "Countrywide's policies and practices are designed to avoid incurring unnecessary fees on accounts, particularly those in bankruptcy."

Nevertheless, Countrywide is taking several steps to ensure the integrity of its bankruptcy servicing process, Bailey said.

The mortgage lender will hire an outside auditor to review randomly selected loans that have been in bankruptcy over the last three years. If errors are uncovered, borrowers will be compensated or their accounts adjusted, Bailey said.

In addition, Countrywide will establish a Bankruptcy Ombudsman's Office to review disputes in the bankruptcy servicing process, Bailey said. The lender also will adopt a set of "best practices" to improve the efficiency of its bankruptcy servicing operation and protect the interests of borrowers, Bailey said.

Schumer was unimpressed. "You're always adopting good practices after you are exposed," he said.

The senator also suggested that Bank of America, which agreed in January to buy Countrywide for $4.1 billion, should consider cutting the purchase price if some of Countrywide's profits came from questionable bankruptcy practices.

"These practices will not be allowed to continue," Schumer said.