States Sue Countrywide for Deceptive Loans

Struggling mortgage lender Countrywide is facing two new lawsuits — one from Illinois and the other from its home state of California. The suits were filed Wednesday, just as Countrywide shareholders prepared to vote on whether to approve the sale of their company to Bank of America.

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ARI SHAPIRO, host:

NPR's business news starts with more trouble for Countrywide.

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SHAPIRO: The struggling mortgage lender has two new lawsuits on its hands. One is from Illinois, the other from Countrywide's home state of California. It's the first time state attorneys general have gone after the lender, which has become a symbol of the housing crises. The Illinois suit claims the company engaged in deceptive trade practices. California's suit accuses the company of violating the state's unfair business practices and false advertising laws. Both suits were filed today, just as Countrywide shareholders prepared a vote on whether to approve the sale of their company to Bank of America.

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