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McCollum sues Countrywide for deceiving borrowers

Countrywide Attorney General Bill McCollum filed suit late Monday against Countrywide Financial, the massive mortgage company that hit financial straits after the real estate bust and which is now being sold to Bank of America. McCollum said the company deceived borrowers into thinking they could afford mortage they couldn't afford, forcing many people to face foreclosures or seek bankruptcy protection.

"The people most affected are the people at the lower end of the spectrum who could least afford a home,'' McCollum said at a press conference Tuesday. Most of them "couldn't afford the kind of loan they were being give or were being promised by Countrywide,'' and the rates and penalties they were quoted were deceiving.

The lawsuit, filed under the Unfair and Deceptive Trade Practice Act, will apply to at least 100 homeowners who have complained to the attorney general's office but that number likely represents a far larger number of victims, he said. Read full story here.