Attorney General Steven Rowe has filed a lawsuit against a Maine-based mortgage lender, Downeast Mortgage Corp. and Commercial Street Capital LLC.

The suit also names James Lindvall, a principal in both companies, and loan officer Catherine Campbell. It alleges they engaged in unfair and deceptive practices in making commercial loans to finance a residential property.

Rowe said the transaction illustrates the type of predatory lending that contributed to the current mortgage crisis.

"Mortgage companies should not steer consumers who do not qualify for mortgages to more risky products lacking consumer protections," said William Lund, superintendent of the Bureau of Consumer Protection.

The complaint states that when Kyle and Melissa Wilkinson did not qualify for a home loan with Downeast in 2005, the company created a commercial limited liability corporation, KW Properties, for the sole purpose of financing the loan. The lenders and the Wilkinsons also persuaded the family's aunt and uncle to guarantee the commercial loan without explaining the terms of the guaranty, according to the attorney general's office. The loan is in foreclosure.