Illinois and California’s Attorneys General have sued mortgage giant Countrywide for what they calls deceptive practices. Illinois Attorney General Lisa Madigan says Countrywide approved loans it knew borrowers couldn’t afford to pay. She says that practice violated state laws, and led to a rash of foreclosures.

MADIGAN: It has had a devastating impact on homeowners here in Illinois, in our communities, and on our tax base, so we want to hold Countrywide accountable for that conduct.

Madigan says Countrywide should pay back borrowers who lost their homes, and she’s asking a court for a temporary stay on new foreclosures.
Both Illinois and California’s suits also name Countrywide CEO Angelo Mozilo as a defendant. Countrywide did not return calls for comment.