The Illinois attorney general’s office, which began an investigation into the business practices of Countrywide Financial Corp. last fall, says it has found enough evidence of wrongdoing that it plans to file a civil suit against the mortgage lender and its chief executive, Angelo Mozilo.
The suit is expected to be filed Wednesday.
In a draft of the complaint, Illinois alleges that the company engaged in “unfair and deceptive practices” in the sale of mortgage loans. The 78-page document says the company loosened its underwriting standards, structured loans with “risky features” and engaged in “marketing and sales techniques” that incentivized employees and mortgage brokers to push loans whether or not homeowners had the ability to repay them.
Read More of Lisa Madigan Plans to Sue Countrywide, CEO off-site...
Cousin Ralph says:
Ah yes, sit back and watch for years as a Demorcat Governor and his cadre of nefarious operatives systematically loot pension funds and the state treasury and do nothing. Does this not seem politically opportunistic to go after the Countrywide boogeyman to say she is doing something than to take on the political corruption in this state that has cost Illinoians far more than some ill-advised Countrywide loans? Remember her campaign in 1998, when she asked where was AG Jim Ryan while George Ryan's underlings were raising money from customers at the Sec. of State office and his political friends were getting state jobs? She and the other DEMS attacked him as being asleep at the switch or worse. I certainly remember those firery speeches, I wonder if she does?