Business

Conn. sues Countrywide

Connecticut Attorney General Richard Blumenthal said Wednesday the state is suing Countrywide Financial Corp., alleging it misled borrowers into taking on risky home loans they could not afford.

Blumenthal alleged the mortgage giant violated state consumer protection laws and charged unjustified fees to homeowners who defaulted.

The company said in a statement that it cannot comment on pending litigation but noted it has previously announced its commitment to responsible lending practices.

California, Illinois and Florida have filed similar lawsuits against California-based Countrywide, whose shareholders recently approved a takeover by Charlotte-based Bank of America.

A federal grand jury has been investigating Countrywide and other lenders at the center of the mortgage crisis.

  Comments