Indiana has sued Countrywide Financial, becoming the latest state to take the mortgage lender to court over its lending practices.
Indiana Attorney General Steve Carter said in a news release Sunday that a state investigation had uncovered a "pattern of misleading and questionable practices" by Countrywide Home Loans and its parent company.
The investigation found that "homeowners were misled when they were told one thing about their loans while signing contracts that indicated other terms," the release said.
The suit filed Friday in Steuben County Court alleges that Countrywide misrepresented or omitted terms on interest rates, the workings of adjustable rate loans and the loans' costs.