Conn. sues Countrywide over lending practices

Wednesday, August 06, 2008 11:52 AM

Symbols: BAC, CFC

HARTFORD, Conn. - Connecticut Attorney General Richard Blumenthal says the state is suing Countrywide Financial Corp., alleging it misled borrowers into taking on risky home loans they could not afford.

Blumenthal announced the lawsuit Wednesday. He alleges the mortgage giant violated state consumer protection laws and charged unjustified fees to homeowners who defaulted.

California and Illinois have filed similar lawsuits against Countrywide. The states say Countrywide should pay restitution to borrowers who lost their homes or loans.

Shareholders of California-based Countrywide Financial recently approved a takeover by Charlotte, N.C.-based Bank of America. tracking

Story Source: Associated Press/AP Online