Updates on the Subprime Situation

I thought this update on the suprime mess was interesting:

http://www.mortgagenewsdaily.com/532007_Subprime_Mess.asp

Here's a quote:

A second part of the proposed legislation is designed to "seal the cracks in our regulatory system to prevent future widespread lending abuses." The bill seeks to regulate mortgage brokers and lenders under the Truth in Lending Act. Among the proposals is a standard for originators to assess a borrower's ability to repay a mortgage and holds lenders responsible for brokers and appraisers.

Isnt that what our job as lenders is? To assess whether or not a mortgage would be a hardship to our borrowers?

I personally feel that the subprime market tightening up is a very beneficial thing. Loan officers need to stop pushing loans that shouldnt be made, and those who can't afford a mortgage shouldnt have one.