facebook
twitter
rss
account
search
search
 

Illinois to sue top mortgage lender

June 25, 2008 at 7:59 AM   |   Comments

SPRINGFIELD, Ill., June 25 (UPI) -- Illinois Attorney General Lisa Madigan said she would sue the nation's largest mortgage lender for overselling risky loans.

The lawsuit accuses Countrywide Financial and its Chief Executive Officer Angelo Mozilo of inflating incomes for loans and misleading customers with hidden fees and false advertising. The suit also says the company gave employees monetary incentives to sell loans with risky features, The New York Times reported.

"People were put into loans they did not understand, could not afford and could not get out of," Madigan said. The "mounting disaster" had a statewide and global impact, she said.

"It's all from the greed of people like Angelo Mozilo," she said.

Countrywide, which has lost $2.5 billion the last three quarters, didn't respond to e-mail from the Times requesting comment, the newspaper reported.

© 2008 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Featured UPI Collection
trending
Celebrity Couples of 2014 [PHOTOS]

Celebrity Couples of 2014 [PHOTOS]

Most Popular
1
U.S. Air Force orders more RQ-4 Global Hawks U.S. Air Force orders more RQ-4 Global Hawks
2
Talon rocket in full-rate production for UAE Talon rocket in full-rate production for UAE
3
EU, Kiev, Moscow gas talks suspended EU, Kiev, Moscow gas talks suspended
4
Chevron gas line closed after accident Chevron gas line closed after accident
5
Students hurt in high school lab fire Students hurt in high school lab fire
Trending News
Video
x
Feedback