Indianapolis Star (08/25/08)
Indiana has filed suit against Countrywide Home Loans Inc. for allegedly deceiving borrowers into taking on costly and high-risk loans. Steve Carter, the state's attorney general, charges the mortgage giant with providing financial incentives for brokers to sell potentially risky loans, omitting or misleadingly presenting loan terms and misleading borrowers about prepayment penalties or the time in which they would apply. He further contends that the company inflated or fabricated borrowers' incomes so they could be approved for larger loans. In seeking hefty civil penalties, Indiana is petitioning the Steuben County Court to order Countrywide to end such practices and void prepayment penalties and loans that originated from them.
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