In recent weeks and months it has become obvious that we face challenges in the housing market that demand reforms to ensure responsible access to credit and prevent the current situation from repeating itself.

I was happy to see that Secretary Paulson and the Working Group on Financial Markets recently outlined a proposal that – in many ways – mirrors aspects of legislation we passed in November to strengthen oversight of loan originators and provide for strong licensing standards in the mortgage industry.

Our legislation was the product of a bipartisan coalition of lawmakers on the Financial Services Committee to propose a balanced response to the credit crunch, and I believe that work on that bill helped cement a strong working relationship between a coalition of Democrats and Republicans on our committee. I’m looking forward to our hearing next week, where we’ll hear from witnesses about a number of proposals to better enlist the FHA in helping those who face problems with their mortgage.

Obviously we must be cautious not to over-regulate or promote bad behavior, but it’s important that we learn from shortfalls of the past. With the Secretary’s proposal and our bill, we have a framework to work with when we reconvene next week.

This entry was posted on Thursday, March 27th, 2008 at 1:51 pm and is filed under Politics, Economy/Budget .