Mortgage Regulation That Makes Sense

In response to the recent crisis in the mortgage industry I am proposing the following for the state of California. Basically here's how it would work:

1. All lenders would be required to pull a Tri-Merged Credit Report for all borrowers in a transaction.
2. Stated income loans could only by for self employed borrowers who can demonstrate that they have at least 1 years worth of mortgage, revolving and installment reserves in addition to their down payment.
3. All borrowers would be required to submit proof of housing payment history and the ability to pay the mortgage they are applying for.
4. Borrowers with imperfect credit or "sub prime" borrowers would be required by law to demonstrate that they have had no prior housing related delinquencies and explain any derogatory credit as well as completing a course on the responsibilities of home ownership.
5. Adjustable rate mortgages would only be available to people who complete a course on ARM awareness and have demonstrated a minimum of 5 years Mortgage payment history with no delinquencies.
6. All first time home buyers would be required to attend a first time home buyer course.
7. Buyers and Homeowners Refinancing would be required to pass a Payment Shock test if the payment shock is over 20% of their current payment they must demonstrate that their is a benefit to the borrower.
8. Any loan that defaults within 1 Year of origination would require that the lender attempt to offer a modification of terms to the borrower. If the borrower still fails to make timely payments then the lender would have to attend mitigation with the borrower to show that the borrower cannot afford the loan, at which point the bank would be responsible for making sure the borrower would be provided with Post-Foreclosure housing. The minimum number of days delinquent before a foreclosure could be requested would be 180 days, the minimum for eviction after would be 90 days and a notice of default could only be filed at 120 days delinquency.