The state seeks restitution as well as fines for pushing unaffordable home loans
Connecticut Attorney General Richard Blumenthal said his office has sued mortgage giant Countrywide Financial for allegedly pushing consumers into unaffordable loans and charging excessive legal fees.
Blumenthal's lawsuit seeks restitution for consumers as well as fines for alleged violations of Connecticut consumer protection and banking laws.
Blumenthal said: ‘Countrywide inflated homeowner incomes to qualify them for loans they couldn't pay back and misled consumers about loan terms.’
“Countrywide inflated homeowner incomes to qualify them for loans they couldn't pay back and misled consumers about loan terms.
Connecticut Attorney General Richard Blumenthal
‘We must vigorously fight predatory lending practices that trap consumers on a debt treadmill," he added.
This suit follows Blumenthal's case against the top credit rating agencies for allegedly giving municipalities artificially low credit ratings. See also: Connecticut sues rating agencies