Results tagged “countrywidefinancial”

Illinois Attorney General Lisa Madigan is suing Countrywide Financial and its CEO Angelo Mozilo, alleging that the financial institution intentionally defrauded borrowers by selling them mortgages they could not afford. The suit, expected to be filed Wednesday morning in Cook County Circuit Court, charges both Countrywide and Mozilo with deceptive business practices and violating the Illinois Fairness in Lending Act, alleging that the company "engaged in unfair and deceptive practices including the loosening of underwriting standards, structuring unfair loan products with risky features, engaging in misleading marketing and sale techniques and incentivizing employees and brokers to sell more and more loans with risky features." According to the suit, the “vast majority of the loans had inflated income, almost all without the borrower’s knowledge.”