Caution Urged as State Mulls Fix For Sub Prime Mortgage Woes

By Erik Anderson / Environment Reporter, KPBS Public Broadcasting

Published August 16, 2007 at 11:46 AM PDT

This story was published more than 17 years ago.

Mortgage brokers meeting in California are asking lawmakers to take reasonable steps to protect their industry. Problems in the mortgage industry are rippling out through the rest of the economy. The

Mortgage brokers meeting in California are asking lawmakers to take reasonable steps to protect their industry. Problems in the mortgage industry are rippling out through the rest of the economy. The problems in the sub prime mortgage market are making it harder for people to borrow money.

Joe Faulk is a member of the National Association of Mortgage Bankers. He says federal regulators are doing a good job and he doesn't want lawmakers to overreact.

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Faulk : Any legislation should be enacted with extreme caution so that we do not overshoot the goal of normalcy and stability in providing appropriately priced credit to deserving consumers.

Faulk says any legislative action should include the entire mortgage marketplace and not single out a specific section of the business. He says keeping the mortgage industry healthy also keeps alive the dream of home ownership for many families.