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The state is asking that all deceptive Countrywide loans be rescinded or modified, even if the real estate company has to buy them back.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.