LOS ANGELES — California Attorney General Jerry Brown filed alawsuit against Countrywide Financial Corp. and two top executivestoday, accusing them of lowering or ignoring lending standards anddeceiving borrowers regarding the risks of sub-prime mortgages andother adjustable-rate loans. Illinois Attorney General Lisa Madiganfiled a similar suit against Countrywide today in Chicago statecourt.
|“Defendants viewed borrowers as nothing more than the means forproducing more loans, originating loans with little or no regard toborrowers' long-term ability to afford them and to sustainhomeownership,” a draft of Brown's complaint says.
|The California suit asks the court to order an end to theCalabasas, Calif.-based mortgage lender's alleged misleading andunfair practices, and demands restitution for victimizedhomeowners.
|Countrywide chief executive Angelo Mozilo and President DavidSambol were also named in the suit. The legal action comes at a badtime for Countrywide, which is awaiting voter approval of atakeover by Bank of America Corp.
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