The second solution to the Mortgage Mess is happily beginning already. Finally, at both the state and federal levels of government the government is starting to police the mortgage industry better.
Here are the changes that I recommend for my industry at the grass roots level-
•1) Licensing for all mortgage loan originators in the country, including employees of banks and credit unions.
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2) Mandatory education each year including basic financial and money classes. A college degree in business, finance, or accounting would be great to enter the industry.
•3) Mandatory E&O Insurance and Surety Bond. These are required in the state of Colorado if you don't work for a bank or credit union. But, the requirements could be higher and required for everyone.
•4) Ethics classes and rules with enforcement.
•5) Requirement that all mortgage loan originators do what is in the best interest for the client. We DO HAVE a fiducial responsibility to our clients in my opinion.
•6) Require that all mortgage loan originators be approved to offer FHA loans. Now, this will put small mortgage brokers at a disadvantage; but it is needed for the greater good of society. What do I 
mean? Millions of people I believe got put into a sub-prime ARM only because their mortgage loan originator could not offer them a FHA loan. I believe that I could have helped a large majority of them get a great FHA fixed rate loan instead. This is why in over 10 years of business I have only done 6 sub-prime loans and I have done hundreds of FHA loans.
•7) Further development of professional designations such as the Certified Mortgage Planning Specialist, Certifed Mortgage Lender, etc.
Next, we need to address the "Too big to fail" syndrome.
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