Fla. attorney general to discuss details of Countrywide lawsuit

Buildings and palm trees are reflected on the entrance of the Countrywide Financial Corp. office in Beverly Hills, Calif., Wednesday June 25, 2008. Countrywide Financial Corp.'s shareholders cleared the way Wednesday for the company to be taken over by Bank of America Corp., even as officials in two states filed lawsuits claiming the distressed mortgage lender misled borrowers into taking on risky home loans.

Kevork Djansezian/The Associated Press
Published: Tuesday, July 1, 2008 at 8:58 a.m.
Last Modified: Tuesday, July 1, 2008 at 8:58 a.m.

TALLAHASSEE, Fla. Florida Attorney General Bill McCollum is set to discuss details of a lawsuit against Countrywide Financial Corp., the nation's largest mortgage lender.

McCollum filed suit against Countrywide on Monday for misleading and unfair trade practices. He has scheduled a Tuesday morning press conference to detail the allegations against the California-based lending giant.

The complaint, filed in the 17th Judicial Circuit in Broward County, claims Countrywide hid the potential negative effects of its so-called "teaser" loans, including increased interest rates and prepayment penalties.

Illinois and California sued Countrywide last week, also accusing the company of persuading homeowners to apply for risky mortgages far beyond their means.

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