California's attorney general slams the nation's largest mortgage lender with a lawsuit over risky loans that cost people their homes.

The lawsuit accuses Countrywide Financial of misleading and unfair business practices. California is demanding that Countrywide pay restitution to borrowers who lost their homes or loans and tens of thousands of people were affected.

California's lawsuit, and another like it in Illinois, cut to the core of the financial crisis in the Bay Area and elsewhere. It blames Countrywide for coursing people into loans destined for default.

Read the full story here on the ABC 7 website.