Fix the system that led to collapse

We all now understand that the tricks of finance that crashed the housing market - and the economy - were the same tools used to afford bigger homes, nicer cars, luxury vacations.

When used by responsible, financially savvy and gainfully employed people, these tools provided a great resource to reach the American dream - in style.

When sold to those who are less secure, have less-stable employment, weak credit and aren't as well-versed in the tricks of finance, it can be a disaster. That disaster eventually affected each of us in the form of job loss, pay cuts, lower property values, foreclosure or less access to credit.

Four suburban members of Congress have a key role in fixing the lack of oversight that contributed to this mess. Those members of the House Financial Services Committee, which will consider a proposed fix later this month, are U.S. Reps. Judy Biggert, Don Manzullo, Melissa Bean and Bill Foster. The proposal on the table would consolidate jobs from other agencies to form a comprehensive Consumer Financial Protection Agency. One primary mission is to apply the same regulations to mortgage lenders, banks, payday loan outfits, credit cards and other financial institutions.

"Nearly a dozen federal agencies have authority to enforce consumer protection laws," said Woodstock Institute President Dory Rand. "But no one has it as primary mission. - Some have little or no protection at all under this system."

The goal, Rand said, is "making sure all financial products are safe."

The number of new jobs would be minimal, advocates say, because the jobs already exist. Fees paid by agencies previously unregulated would cover any new costs.

The bill is not without critics. Mortgage companies say dealing with multiple agencies and complying with new regulations will be costly.

We share the concern about added demands on business, particularly smaller operations such as community banks and reputable local lenders. We also hesitate to endorse the creation of yet another government agency.

However, the system that was manipulated to qualify the unqualified needs fixing. As we've seen, this is not only about the high-risk borrower. Even the most financially sophisticated people have been affected by this economy.

The time to fix problems is now, while the wounds of the financial crisis are fresh.

Leveling the playing field for businesses that loan money is a great start. We also encourage stiff penalties for those who violate lending rules by using deception or high-pressure sales tactics.

We have used this space to advocate for restrictions on credit card companies marketing to college students, a vulnerable group and easy target that appears to be slipping deeper into debt.

In much the same way, we urge Democrats Bean and Foster and Republicans Biggert and Manzullo to support more consumer protections in the financial marketplace. This is not only about protecting borrowers. It's about protecting our entire economy.