FreedomWorks poll shows 62 percent believe individuals should take responsibility

WASHINGTON (Business Wire EON) November 5, 2007 -- National headlines are dominated with stories about the housing market slowdown and growing defaults on subprime mortgages, which were often extended to people with bad credit. Believing that market problems need government solutions, Congress is debating federal intervention into the mortgage market.

This poll provides a clear signal to lawmakers that the public is leery of expansive new regulations or a massive government bailout of lenders

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.

For more information on subprime lending issues visit www.SubprimeNewsroom.com