Published: July 19, 2008 09:51 am         

Other View: Tighten the housing rules

Federal banking regulators will have a crack this week at tightening rules that should have been cinched long ago, and that could have curtailed -- if not prevented -- the current housing crisis and credit crunch.

The changes are mostly common sense: They would force lenders to make less-credit-worthy borrowers put aside money to pay for taxes and insurance and prevent lenders from penalizing those who pay loans off early. Lenders would also be barred from making loans without having proof of a borrower's income and assets.

It's an attempt to end the shady practices that created the subprime loan epidemic and the ripple effects of devastation that have caused so much damage here and elsewhere.

The rules, assuming they are approved, won't help with the mess we're in right now.

But better tools for regulators and wiser rules for lenders certainly could help the nation avoid a "next time."

The Plain Dealer, Cleveland