The Attorneys General of Illinois and California announced today that they are suing Countrywide Financial for its role in the subprime mortgage meltdown.
The Illinois lawsuit alleges Countrywide “caused significant harm to the public, the market, and scores of Illinois borrowers and homeowners,” and seeks damages for residents affected by foreclosure. Attorney General Jerry Brown of California accuses Countrywide of deceptively marketing risky mortgages to consumers and plotting to “mass produce loans for sale on the secondary market.” The California lawsuit also seeks restitution for affected borrowers. Both lawsuits also named Countrywide CEO Angelo Mozilo as a defendant.
Illinois to Sue Countrywide Over Lending Practices [CNN]
Calif AG Sues Countrywide Over Alleged Loan Scheme [NYT]