President George W. Bush blames the crisis on the failure of borrowers to properly read the fine print. Many experts state that the problem runs deeper than that. The mortgage industry has been in a tug of war of sorts between a social commitment to broad ownership and the efforts of private financial operators to earn money for quite some time now.
Co-editor of The American Prospect, Robert Kuttner, and a senior fellow at Demos, a think tank based in New York, states that the government should return to the direct subsidization of starter mortgages as well as the construction of housing for buyers with moderate incomes. Kuttner believes that these programs should combine counseling along with a careful credit assessment, rather than completely relying on the private mortgage industry. He continues by stating that he would prohibit speculative and irresponsible lenders from selling mortgages on the secondary market.
Kuttner states that American's need a restored system in which government supports home ownership in a market where mortgage lenders serve as responsible creditors as opposed to predators.
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