Lenders ‘Tricked’ Buyers, Democrat Platform Declares

September 5, 2012 - 10:56 AM

The 2012 Democrat platform twice declares that unscrupulous businesses have been tricking people into buying homes and signing loans they couldn’t afford – and says that stronger government regulation is the solution.

In the section of the 2012 Democrat platform entitled “Stabilizing the Housing Market and Hard-Hit Communities,” Democrats lay the blame squarely on lenders for duping gullible customers (emphasis added):

“For more than a decade, irresponsible lenders tricked buyers into signing subprime loans while too many homeowners got in over their heads by buying homes they couldn’t afford.

Later, in the section titled “America Works When Everyone Plays by the Same Rules,” the Democrat platform says that a lack of regulation allowed banks and investors to trick families into making unwise purchases:

“Banks on Wall Street played by different rules than businesses on Main Street and community banks. Without strong enough regulations, families were enticed, and sometimes tricked, into buying homes they couldn’t afford. Banks and investors were allowed to package and sell risky mortgages. Huge reckless bets were made with other people’s money on the line.”

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