June 8 (Bloomberg) -- New York subpoenaed Vanderbilt Appraisal Company LLC, the valuation business partly owned by developers Arthur and William Lie Zeckendorf, in a widening probe into whether mortgage brokers pressured appraisers.

Attorney General Andrew Cuomo said in an interview today he has subpoenaed ``many, many more'' companies. The four that have acknowledged receiving them are: Vanderbilt, New York appraiser Mitchell, Maxwell Jackson Inc., First American Corp.'s eAppraiseIT LLC and the broker Manhattan Mortgage Co. Manhattan-based Vanderbilt didn't say what Cuomo was seeking.

``We have received the subpoena, which has been forwarded to legal counsel,'' Vanderbilt spokesman Richard Rubenstein said. ``We are in the process of reviewing it.''

Attorneys general in Ohio and Colorado also are investigating the mortgage industry as delinquencies and foreclosures rise across the U.S. Inflated appraisals can lead to defaults if a homeowner borrows too much money and can't sell or refinance for enough to pay off the mortgage.

Vanderbilt's principals are Michael Vargas and Andrew Fautley, who have a combined 30 years of appraisal experience and have completed more than 20,000 appraisals, according to the company Web site.

Clients

Clients include JPMorgan Chase & Co., Citibank Mortgage, HSBC Mortgage, US Trust Co., Wells Fargo Home Mortgage, and Bank of America Corp., according to Vanderbilt's Web site.

The principals of Terra Holdings, which owns the residential sales brokers Brown Harris Stevens and Halstead Property LLC in addition to Vanderbilt, include the Zeckendorfs, David A. Burris, Kent M. Swig and Allied Partners, according to the company's Web site.

The Zeckendorfs are third-generation New York developers who have made about $200 million in real estate acquisitions, according to the Web site. Their grandfather assembled the land where the United Nations now stands. The brothers' latest project is 15 Central Park West, a 43-tower luxury building financed in part by Goldman Sachs Group Inc. where hedge fund manager Daniel Loeb, the chief executive officer of Third Point LLC, plans to live.

Vanderbilt appraises real estate in New York, New Jersey, Connecticut and south Florida.

Subprime Probe

Cuomo said in March he was investigating subprime mortgages, given to homeowners with bad or limited credit histories who pay higher interest rates. The investigation has widened to the broader mortgage market with the attorney seeking information from companies that specialize in higher-end properties, such as Manhattan Mortgage and Mitchell, Maxwell & Jackson.

MMJ, which valued 9,000 properties in Manhattan last year, said on May 18 it received a subpoena. Attorney Y. David Scharf, who represents the company, has said his client is cooperating and isn't the target of the investigation.

A third New York company, closely held Manhattan Mortgage Co., was also subpoenaed.

Ohio Attorney General Marc Dann yesterday sued 10 real-estate companies, accusing them of improperly pressuring appraisers to inflate property values.

The companies, based in Ohio, California, Arizona and New York, are accused of setting specific estimated values on properties and communicating a desired price to appraisers, according to the lawsuits filed against seven mortgage brokers, two lenders and an appraiser.

To contact the reporter on this story: Sharon L. Crenson in New York at screnson@bloomberg.net

Last Updated: June 8, 2007 12:04 EDT