Skip to: Content
Skip to: Site Navigation
Skip to: Search
THURSDAY, NOVEMBER 26, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


0

Illinois to Sue Countrywide, CEO Over Foreclosure Fiasco

State blames company for foreclosures

Share

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The state is asking that all deceptive Countrywide loans be rescinded or modified, even if the real estate company has to buy them back.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

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.
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.
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.
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)
« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.24.09
Murdoch and Microsoft: The Mice Are Trying to Roar
11.23.09
Books Are Bad for You
0 comments
VIEWING:
 
LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

15 Stories

LYNN SWEET

 Dems May 
 Lose Obama's 
 Old Senate Seat 

Illinois field isn't scaring GOP frontrunner Mark Kirk

Nov 16, 09 10:00 AM CST
(Newser) - The Democratic field for President Obama’s old Illinois Senate seat is anemic enough to make a GOP win a real possibility, Lynn Sweet writes. The candidates—only one of whom has run for office, ever—haven’t phased the Republican frontrunner, Rep. Mark Kirk. The statewide Dem establishment... More »

MORE ABOUT:
Illinois • Lisa Madigan • Alexi Giannoulias • President Obama • Election 2010 • Roland Burris • Senate seat • Mark Kirk • midterm elections

 Blago Book: 
 Senate Deal 
 'Routine' 
 Politics 

Former Illinois gov admits only 'routine' backroom dealing

Sep 1, 09 12:07 PM CDT
(Newser) - Rod Blagojevich’s memoir makes the case for his innocence with a lot of help from Shakespeare, the Chicago Tribune reports. While blaming his woes specifically on five enemies, he likens his plight to that of Othello and Lear. “You might as well throw in a little Richard... More »

MORE ABOUT:
Patrick Fitzgerald • corruption • Illinois • memoir • governor • Tony Rezko • Rod Blagojevich • political scandal • Lisa Madigan • Michael Madigan • Richard Mell

Countrywide's Mozilo Charged With Fraud

Mozilo, two others accused of fraud, misleading investors

Jun 4, 09 4:09 PM CDT
(Newser) - The SEC has charged former Countrywide chief Angelo Mozilo and two other former execs with civil fraud, the Wall Street Journal reports. The agency accuses them of insider trading and withholding information from investors about the condition of what was once the nation's largest mortgage company. They are the first... More »

MORE ABOUT:
fraud • Countrywide • civil lawsuits • Angelo Mozilo • Securities and Exchange Commission

15 Stories


Illinois accuses Countrywide of fraud
New York Times

Countrywide offers favors to lawmaker
Los Angeles Times


Business  •  US 
TwitterFollow @NewserBusiness on Twitter

 
Illinois • Countrywide • civil lawsuits • Angelo Mozilo • subprime crisis • Lisa Madigan

from our news partners