Treasury Secretary Henry Paulson wants stronger government oversight of mortgage lenders and their dealings. Trying to avoid a repeat of this current meltdown is his goal and preventing the country from potentially falling deeper into recession due to continued poor operations from the main mortgage lending houses.

Some of the recommendations he has include:

• Stricter laws regulating the licensing of mortgage brokers
• Improved transparency from credit rating agencies about their assessments
• Issuers of mortgage backed securities must provide more detailed information about their packages

While these will certainly not help out with the current credit crunch, they hope these measures will make it significantly more difficult to repeat what has happened in the past 5 years.

I have viewed most of this years credit crunch fixes as political posturing and band-aid style solutions to an enormous problem. However, these moves from the Treasury do actually make good logical sense, its just too bad they weren’t around 5 years ago, instead of after the fact.