Conn. sues Countrywide over lending practices

August 07, 2008
Connecticut sued Countrywide Financial Corp. on Wednesday, becoming the latest state to take the mortgage lender to court over its lending practices.
     State Attorney General Richard Blumenthal alleges that Countrywide misled borrowers into taking on risky home loans they could not afford. California, Illinois, Florida and the city of San Diego have made similar claims in their own lawsuits against the company.
     Countrywide, once the nation's largest mortgage originator before a jump in bad loans ravished its business, has been blamed for helping to cause the nation's mortgage meltdown.
     The lawsuit was filed in Hartford Superior Court on Wednesday, and the company was served with the legal papers earlier in the day, Blumenthal said.