Poll Shows America Does Not Support Federal Intervention in Sub-Prime Market

Public Opinion Strategies poll show 62 percent believe 'individuals should

take responsibility.'

Oct 24, 2007, 01:00 ET from FreedomWorks

    WASHINGTON, Oct. 24 /PRNewswire-USNewswire/ -- National headlines are
 dominated with stories about the housing market slowdown and credit crunch.
 Believing that market problems need government solutions, Congress is
 debating federal intervention into the mortgage market.
     The housing market is adjusting to an oversupply of housing stock and
 the failure of many high risk borrowers to meet their mortgage agreements.
 After years of steady growth in housing prices and a historic expansion of
 homeownership, a market correction is to be expected. Rather than aiding
 the situation, government intervention would distort the natural correction
 and prolong the uncertainty and turmoil in the housing market.
     Americans understand this and believe that individual homeowners and
 lenders will need to adjust to market realties, and a federal bailout of
 the sub-prime market or new regulations are not wanted according to a newly
 released Public Opinion Strategies poll. Between October 18 and 21, 1,000
 likely voters were questioned over their opinions on the mortgage crisis.
     With a margin of error of 3.1 percent., 90 percent of those surveyed
 viewed sub-prime mortgages as a serious crisis, but only 31 percent of
 respondents believed the federal government should get involved.
     "This poll provides a clear signal to lawmakers that the public is
 leery of expansive new regulations or a massive government bailout of
 lenders," said Wayne Brough, Chief Economist at FreedomWorks.
     Rather than create new federal mandates and regulations, 93 percent of
 respondents support disclosure to provide consumers more financial
 information before signing mortgages. Eighty-seven percent favored
 verifying finances and incomes to ensure buyers can pay back their loans
 and by more than a two-to- one margin, people opposed legislation that
 would eliminate the need for a down payment on federally funded loans.
     Brough continued:
     "People understand the risks inherent in the housing market. New
 regulations to prop up those who misjudged the market encourage individuals
 to undertake riskier transactions, knowing that ultimately the government
 will bear the risk. Moreover, new regulations can actually reduce access to
 credit, making it more difficult for consumers to realize their goals of
 homeownership. The American people view the market, not the government, as
 the proper arena for correcting current trends. Congress would be wise to
 follow the same path."
     Full poll results are available at www.freedomworks.org.

SOURCE FreedomWorks