Illinois Sues Countrywide Over Subrprime Loans

June 30, 2010

At issue is the subprime loans and the fact that it appears that Countrywide may have charged a higher interest for loans to minorities than the white folks…

The state of Illinois sued former mortgage giant Countrywide Financial Corp. on Tuesday for allegedly using discriminatory lending practices for minority borrowers.

The lawsuit, filed in Cook County Circuit Court by Illinois Attorney General Lisa Madigan, said an investigation revealed that African-American and Latino borrowers were much more likely to be given risky subprime loans by the lender than similarly situated whites from 2005 to 2007.

The lawsuit also alleged that a statistical analysis revealed that the company charged Latino and African-American borrowers more interest and fees on certain mortgages than whites.