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Report: Illinois to sue Countrywide

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News item from the New York Times tonight: ‘The Illinois attorney general is suing Countrywide Financial, the troubled mortgage lender, and Angelo R. Mozilo, its chief executive, contending that the company and its executives defrauded borrowers in the state by selling them costly and defective loans that quickly went into foreclosure.’

More: ‘The lawsuit, which is expected to be filed on Wednesday in Illinois state court, accused Countrywide and Mr. Mozilo of relaxing underwriting standards, structuring loans with risky features, and misleading consumers with hidden fees and fake marketing claims, like its heavily advertised ‘no closing costs loan.’ Countrywide also created incentives for its employees and brokers to sell questionable loans by paying them more on such sales, the complaint said.’

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The report says Countrywide did not immediately respond to an e-mail seeking comment.

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com.

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