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October 12, 2008 3:42:19 PM CDT

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Illinois to Sue Countrywide, CEO Over Foreclosure Fiasco

Posted Jun 25, 08 8:57 AM CDT in US,  Business 

(Newser) – The state of Illinois will sue Countrywide and its CEO today for "unfair and deceptive practices" in the first suit related to the current mortgage crisis. The company is accused of pushing loans on homeowners even if they couldn't repay them, the Wall Street Journal reports. Illinois' attorney general blamed Countrywide's actions for widespread foreclosures.

The state is asking that all deceptive Countrywide loans be rescinded or modified, even if the real estate company has to buy them back. The lawsuit comes after the state interviewed 30 former Countrywide employees and reviewed 100,000 pages of documents, Federal prosecutors are investigating company practices for possible securities fraud.

Source Wall Street Journal

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Activists protest the foreclosure crisis at Countrywide Financial. Illinois' attorney general plans to sue the company today for deceptive practices that led for foreclosures in her state.   (Getty Images)
The lawsuit against Countrywide and its CEO would be the first related to the nation's current mortgage crisis.   (Getty Images)
Countrywide Financial Corp CEO Angelo Mozilo speaks on the subprime market fallout last fall. Illinois plans to sue Mozilo and his company for deceptive practices.   (AP Photo/Ric Francis)
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mortgage crisis  • Illinois  • civil lawsuits  • Countrywide  • Angelo Mozilo


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