WASHINGTON –Treasury Secretary Henry Paulson announced a series of proposals this morning designed to prevent a reoccurrence of the conditions that led to the current mortgage meltdown and resulting credit crisis. Speaking before the National Press Club this morning, Paulson's presented the recommendations of the President's Working Group on Financial Markets he said would create "more transparent, better-functioning, and better-managed markets."

"The PWG is recommending three important changes for mortgage originators and brokers. First, federal and state regulators should strengthen oversight of all mortgage originators. Second, state financial regulators should implement strong nationwide licensing standards for mortgage brokers. Third, at the end of the current comment period, the Federal Reserve will issue revised rules for consumer protection and disclosure requirements. As part of a larger study of financial regulatory structure, Treasury will soon release additional recommendations to improve the mortgage origination process," said Paulson.

"This effort is not about finding excuses and scapegoats," Paulson said. "We are encouraging financial institutions to continue to strengthen balance sheets by raising capital and revisiting dividend policies; we need these institutions to continue to lend and facilitate economic growth."