HARTFORD - Connecticut sued Countrywide Financial Corp. yesterday, becoming the latest state to take the mortgage lender to court over its lending practices.

State Attorney General Richard Blumenthal alleges that Countrywide misled borrowers into taking on risky home loans they could not afford. California, Illinois, Florida, and the City of San Diego have made similar claims in suits against the company.

Countrywide, the nation's largest mortgage originator before a jump in bad loans ravished its business, has been blamed for helping to cause the nation's mortgage meltdown.

Blumenthal's office and Connecticut's departments of Banking and Consumer Protection are the plaintiffs in the Connecticut lawsuit. They allege the company violated state consumer protection and banking laws and charged unjustified fees to homeowners who defaulted.

"Countrywide conned homeowners into mortgages they simply could not afford," Blumenthal said, adding that hundreds, possibly thousands, of homeowners were affected. He said he does not yet have a precise number.

Countrywide, of Calabasas, Calif., said it cannot comment on pending litigation.

But the company noted it had previously said it was committed to responsible lending practices, including an effort to keep an estimated 265,000 customers in their homes by modifying at least $40 billion in troubled mortgages.

Countrywide's shareholders approved a takeover by Bank of America in June.

Blumenthal said his office has been in touch with Bank of America, but is not suing the bank because Countrywide is the entity the state considers legally responsible.

Like Connecticut, the other states suing Countrywide want the company to pay restitution to borrowers who lost their homes or paid excessive fees. Connecticut also wants the home loans renegotiated and is seeking fines from the lender.

Blumenthal said that when homeowners defaulted on their Countrywide loans, the company bullied them into repayment plans with excessive fees that made it nearly impossible for consumers to dig out of the debt.

He said the lender also assured customers they could renegotiate their loans if necessary, but later reneged on the offer.

"Countrywide stacked the deck and the deal against its customers," Blumenthal said. "Our goal is to unstack the deck and undo the deals, restoring fairness and fiscal sense to mortgages."

Countrywide has also been under scrutiny by federal authorities.

A federal grand jury has been investigating Countrywide, New Century Financial Corp., and IndyMac Bancorp Inc. - a sign that prosecutors are looking into whether fraud and other crimes might have contributed to the mortgage crisis that led to the demise of all three California-based lenders.

Washington state Governor Chris Gregoire also has accused Countrywide of discriminatory and predatory lending practices that targeted minority borrowers, and of cheating Washington out of $5 million in fees.