More States Jump on Anti-Countrywide Crusade

Indiana is the latest state to file an action against Countrywide. Indiana's Attorney General Steve Carter alleges in the lawsuit that Countrywide:

1. Provided financial incentive for employees and loan brokers acting as agents to sell loans with potentially risky features.

2. Made deceptive or misleading representations or omissions on loan terms and charges including the interest rate of loans, the presence or mechanics of the adjustable rate feature of the loans, and the costs of the loans.

3. Misled borrowers about the presence, significance or meaning of a prepayment penalty or the time period in which a prepayment penalty would apply.

4. Inflated or fabricated a borrower’s income on a loan application allowing a borrower to be approved for loans he would have failed to qualify for otherwise.

Indiana's action follow those of California, Connecticut, Florida, Illinois and West Virginia.