Brown Sues Countrywide Financial

San Francisco Chronicle

California Attorney General Jerry Brown sued Countrywide Financial Corp. and two of its top executives, alleging they used misleading advertising and unfair business practices to dupe consumers into accepting risky home loans that would eventually force thousands of them into foreclosure.

"Buyers were led down the primrose path, fed extremely complicated and risky mortgage instruments and beguiled into signing up for what turned out to be a disaster," Brown said. "This lawsuit is important because it exposes and seeks remedies for what became a cancer in our entire financial system."

The lawsuit, which names Chief Executive Officer Angelo Mozilo and President David Sambol, was filed in Los Angeles Superior Court on Wednesday. It was a busy day for the troubled Calabasas (Los Angeles County) company, the nation's largest mortgage lender at the outset of last year and the subject of bankruptcy speculation by the end.

Click here for the complete San Francisco Chronicle story.

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