Connecticut AG The Latest To Jump On "Sue Countrywide" Bandwagon; Alleges Unfair, Deceptive Practices; Seeks To Rescind, Modify Mortgages

The Connecticut Attorney General's Office announced today:

• Attorney General Richard Blumenthal today announced his office has sued mortgage giant Countrywide Financial Corp. and related companies for allegedly pushing consumers into deceptive, unaffordable loans and workouts, and charging homeowners in default unjustified and excessive legal fees. Blumenthal's lawsuit seeks restitution for consumers as well as fines and forfeitures to the state for alleged violations of Connecticut consumer protection and banking laws. The action also asks the court to rescind, reform or modify all mortgages that broke state laws.(1)

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• Blumenthal said, "Countrywide conned customers into loans that were clearly unaffordable and unsustainable, turning the American Dream of homeownership into a nightmare. When consumers defaulted, the company bullied them into workouts doomed to fail. Countrywide crammed unconscionable legal fees into renegotiated loans, digging consumers deeper into debt. The company broke promises that homeowners could refinance, condemning them to hopelessly unaffordable loans."

For more, see:

• Connecticut AG News Release: State Sues Countrywide For Allegedly Deceptive Loans And Loan Renegotiations, Unjustified Legal Fees;

• Lawsuit: State of Connecticut v. Countrywide Financial Corporation, et al.

Go here, Go here and Go here for more on other Countrywide lawsuits & other problems.

(1) According to the AG's news release, the lawsuit seeks civil penalties of up to $100,000 per violation of state banking laws and up to $5,000 per violation of state consumer protection laws, disgorgement of all ill-gotten gains and an order compelling the company to cease its illegal practices, in addition to restitution for the consumer and invalidation or modification of the terms of all illegal mortgages. countrywide consumer problems