INDIANAPOLIS (AP) - Indiana is the latest state to sue Countrywide Financial Corporation over its lending practices.

Indiana Attorney General Steve Carter filed the suit Friday in Steuben County Court. It accused California-based Countrywide of
misleading homeowners about the terms of their loans.

The suit alleges that Countrywide misrepresented or omitted terms on interest rates, the workings of adjustable rate loans and the loans' costs. It also alleges that borrowers were misled about prepayment penalties and that some borrowers' incomes were inflated on applications so that they would qualify for loans.

Attorneys general in California, Connecticut, Florida and Illinois also have sued the lender.

The suit also names Countrywide Home Loans Inc.

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