Ind. 6th State To Sue Countrywide Over Risky Loans

Law360, New York (August 26, 2008, 12:00 AM EDT) -- Indiana Attorney General Steve Carter has filed a lawsuit against Countrywide Financial Corp. for allegedly misleading homeowners into purchasing risky mortgages they could not afford, making Indiana the sixth state since June to sue the country's largest mortgage lender.

The lawsuit, filed Monday in Steuben County Court against Countrywide Financial and its mortgage unit Countrywide Home Loans Inc., claims the company violated Indiana state law by providing financial incentives to its employees to sell potentially risky loans; making misrepresentations to homeowners regarding interest rates, prepayment penalties...
To view the full article, register now.