Connecticut’s Attorney General Richard Blumenthal, who previously jumped aboard hedge fund reform in the wake of the Amaranth collapse, is now attaching himself to the latest hot-button financial issue. He’s suing mortgage lender Countrywide for violating Connecticut’s business regulations.
WSJ: Connecticut Attorney General Richard Blumenthal has sued Bank of America Corp.’s Countrywide Financial Corp. for allegedly deceptive lending practices.
Echoing the many other legal complaints against the mortgage lender, the Connecticut lawsuit alleges Countrywide engaged in several types of inappropriate lending behaviour and made loans to consumers that were unaffordable or unsuitable for the borrower. The complaint, filed in state court in Hartford, alleges violations of Connecticut’s unfair trade practices and banking laws.
“Countrywide conned customers into loans that were clearly unaffordable and unsustainable, turning the American Dream of homeownership into a nightmare,” Mr. Blumenthal said.
The lawsuit seeks civil penalties of as much as $100,000 per violation of state banking laws and as much as $5,000 per violation of state consumer-protection laws; as well as disgorgement of any ill-gotten gains and an order compelling the company to cease the disputed practices.
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