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.
"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.