ALBANY, N.Y. (AP) – New York Attorney General Andrew Cuomo’s office is investigating the practices of subprime lenders, the mortgage companies that make loans to consumers with questionable credit histories.

Mr. Cuomo said at a news conference Thursday that his office is looking into the subprime mortgage market, but he did not disclose any details of the investigation, spokesman John Milgrim said.

The investigation comes as the shares of subprime lenders have been pummeled in the markets and the federal government is preparing to punish some subprime mortgage lenders for discriminatory practices.

The Housing and Urban Development Department has also suggested that the largest mortgage companies, Fannie Mae and Freddie Mac, consider giving strapped homeowners more time to make their payments, Bush administration Housing Secretary Alphonso Jackson said Wednesday.

There has been a recent spike in foreclosures, especially among homeowners who took out subprime loans, the higher-priced loans to people with tarnished credit or low incomes who are considered riskier borrowers.

Mounting concerns about subprime lenders have caused worries among investors. Those fears prompted a sharp drop on Wall Street earlier this week and they contributed to a worldwide stock market meltdown on Feb. 27, when the Dow Jones industrials suffered a 416-point plunge.

Federal bank regulators earlier this month called on lenders to use caution in making subprime loans and strictly evaluate borrowers’ ability to repay them.