Did Big Lenders Employ Deception?

That's what a House committee is looking into.

The politicians would love to blame someone other than themselves for the economic collapse.

I am sure they will be able to uncover some deceptive practices, but if lenders used wholesale dishonest practices, then honest lenders would get the lion share of business.

Won't the free market keep lenders honest?

The Washington Post reports:

WASHINGTON — A House panel is investigating the role of mortgage lenders in the financial crisis and is seeking information from some of the biggest U.S. companies to determine if they used deceptive practices to lure borrowers into the housing boom.

Rep. Edolphus Towns, D-N.Y., chairman of the House Oversight and Government Reform Committee, said Friday the panel also is issuing a subpoena to Countrywide Financial Corp. – now owned by Bank of America Corp. – for records related to its so-called "VIP" program that provided mortgages to several senators and other officials with preferential terms. Documents provided in response to the subpoena will go to the House ethics committee.